Research
Discussion Paper
PIERspectives
aBRIDGEd
PIER Blog
Events
Conferences
Research Workshops
Policy Forums
Seminars
Exchanges
Research Briefs
Community
PIER Research Network
Visiting Fellows
Funding and Grants
About Us
Our Organization
Announcements
PIER Board
Staff
Work with Us
Contact Us
TH
EN
Research
Research
Discussion Paper
PIERspectives
aBRIDGEd
PIER Blog
Exchange Rate Effects on Firm Performance: A NICER Approach
Latest discussion Paper
Exchange Rate Effects on Firm Performance: A NICER Approach
ผลกระทบของการขึ้นค่าเล่าเรียนต่อการตัดสินใจเรียนมหาวิทยาลัย
Latest aBRIDGEd
ผลกระทบของการขึ้นค่าเล่าเรียนต่อการตัดสินใจเรียนมหาวิทยาลัย
Events
Events
Conferences
Research Workshops
Policy Forums
Seminars
Exchanges
Research Briefs
Joint NSD-PIER Applied Microeconomics Research Workshop
Upcoming workshop
Joint NSD-PIER Applied Microeconomics Research Workshop
Special Economic Zones and Firm Performance: Evidence from Vietnamese Firms
Latest PIER Economics Seminar
Special Economic Zones and Firm Performance: Evidence from Vietnamese Firms
สถาบันวิจัยเศรษฐกิจป๋วย อึ๊งภากรณ์
Puey Ungphakorn
Institute for
Economic Research
Puey Ungphakorn Institute for Economic Research
Community
Community
PIER Research Network
Visiting Fellows
Funding and Grants
PIER Research Network
PIER Research Network
Funding & Grants
Funding & Grants
About Us
About Us
Our Organization
Announcements
PIER Board
Staff
Work with Us
Contact Us
Staff
Staff
Call for Papers: PIER Research Workshop 2025
Latest announcement
Call for Papers: PIER Research Workshop 2025
Discussion Paperdp
QR code
Year
2025
2024
2023
2022
...
11 May 2016
20161462924800000
No. 027

Risk and Return in Village Economies

Abstract

This paper provides a theory-based empirical framework for understanding the risk and return on productive capital assets and their allocation across activities in an economy characterized by idiosyncratic and aggregate risk and thin formal markets for real and financial assets. We apply our framework to households running business enterprises in Thai villages with extensive networks, taking advantage of panel data: income, assets, consumption, gifts, and loans. We decompose risk and estimate the risk premia faced by households, distinguishing aggregate risk from idiosyncratic, potentially diversifiable risk. This distinction matters for estimating measures of underlying productivity and has important policy implications.

Download full text
JEL: D12D13G11L23L26O12O16O17
Tags: rate of returnaggregate riskidiosyncratic riskhousehold enterpriserisk sharingkinship networksvillage economyasset pricingcapmrisk premiumrisk-adjusted returnproductivity
The views expressed in this workshop do not necessarily reflect the views of the Puey Ungphakorn Institute for Economic Research or the Bank of Thailand.
Krislert Samphantharak
Krislert Samphantharak
University of California San Diego
Robert Townsend
Robert Townsend
Massachusetts Institute of Technology

Puey Ungphakorn Institute for Economic Research

273 Samsen Rd, Phra Nakhon, Bangkok 10200

Phone: 0-2283-6066

Email: pier@bot.or.th

Terms of Service | Personal Data Privacy Policy

Copyright © 2025 by Puey Ungphakorn Institute for Economic Research.

Content on this site is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported license.

Creative Commons Attribution NonCommercial ShareAlike

Get PIER email updates

Facebook
YouTube
Email