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.

中文翻译：

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乡村经济的风险与回报


本文提供了一个基于理论的实证框架，用于理解生产性资本资产的风险和回报及其在以特殊和总体风险以及实物和金融资产正规市场薄弱为特征的经济体中的分配。我们将我们的框架应用于拥有广泛网络的泰国村庄中经营商业企业的家庭，利用面板数据：收入、资产、消费、礼物和贷款。我们分解风险并估计家庭面临的风险溢价，将总体风险与特殊的、潜在的可分散风险区分开来。这种区别对于估计基本生产力的衡量标准很重要，并且具有重要的政策含义。