Informal Insurance and Moral Hazard: Gambling and Remittances in Thailand

摘要: More than 35% of Thai households either give or receive remittances, and remittances account for about one-third the income receiving households. Remittances may be an important source protection against adverse events household. This paper provides evidence that behave in a way is consistent with insurance: they are sensitive to shocks regional rainfall respond household level events. The goes on examine whether there moral hazard informal insurance contracts link who send remittances. Specifically, we how quality offered through affects probability amount gambling done by hazard: remit more likely gamble higher potential between sending province. Alternatively, results can interpreted indicate insured shift their portfolios toward riskier investments.