خلاصة:
his study aims to demonstrate that joining in risk sharing networkleads to the reduction in incomes volatility. In this respect, income variance for a group of members in an informal insurance is modelled in which income variance prior to joining risk sharing network and after joining is analyzed statistically. A Monte Carlo simulation technique is used to prove the result. To extend and analyze the sensitivity, a simulation is performed on either small size population or large size population, the probability of occurrence and the amount of loss are also repeated in all levels. The result of study shows that joining to risk sharing network significantly decreases the income volatility. It is also proved that the probability of occurrence and the amount of loss positively affect the intensity of income volatility.
ملخص الجهاز:
"In this respect, income variance for a group of members in an informal insurance is modelled in which income variance prior to joining risk sharing network and after joining is analyzed statistically.
Kurosaki & Fafchamps (2002), Dercon & Christiaensen (2011) and Jalalan & Ravalion (1999) showed that how a risk sharing network can improve the income of poor people in particular.
The main contribution of this study is to decrease income inequality in risk sharing network such as informal insurance through an analytical method, this study efficiently shows that the probability of occurrence and the measure of loss in income volatility.
The zero assumption is that the income variance of the group before joining and after that is equal in a risk-sharing network related to an informal insurance.
The zero assumption is that the income variance of the group before joining and after that is equal in a risk-sharing network related to an informal insurance.
05 Figure 1: The Result of Simulation As seen in Fig (1), the standardized statistics by t-distribution is used to represent the difference between the income variance of the 20000-member group considering the ratio of loss to the probability of incident occurrence.
In other words, the amount of loss resulted from occurrence exceeds 30 percent, the risk that would happen with the probability less than 1 percent can also leads to a significant difference between the income variance before joining the group and after joining it."