MIT 14.04 Intermediate Microeconomic Theory, Fall 2020 - Lecture 8: Risk-Sharing Application

MIT 14.04 Intermediate Microeconomic Theory, Fall 2020 Instructor: Prof. Robert Townsend View the complete course: https://ocw.mit.edu/courses/14-04-intermediate-microeconomic-theory-fall-2020/ YouTube Playlist: https://www.youtube.com/watch?v=XSTSfCs74bg&list=PLUl4u3cNGP63wnrKge9vllow3Y2OOOKqF Village India is home to extreme poverty and enormous risks, including those that can affect one household but not others due to specialization in income sources, crops, and soil. Yet households in village India come close to an optimal allocation of risk bearing, achieved apparently through ex post borrowing/lending and gifts/transfers. In the medieval village, a primary mechanism was ex ante division of land, though portfolio diversification was imperfect. License: Creative Commons BY-NC-SA More information at https://ocw.mit.edu/terms More courses at https://ocw.mit.edu Support OCW at http://ow.ly/a1If50zVRlQ We encourage constructive comments and discussion on OCW’s YouTube and other social media channels. Personal attacks, hate speech, trolling, and inappropriate comments are not allowed and may be removed. More details at https://ocw.mit.edu/comments.