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This essay evaluates the role of social capital as a risk-coping device in rural communities of India's Andhra Pradesh state. Focusing on health outcomes among children between the ages of 1 and 9, I test whether social capital serves as an insurance mechanism and helps households minimize the negative impact of income shocks. Negative shocks considered are of two types: individual-household level shocks and common (or aggregate) shocks affecting more than one household.
This essay evaluates the role of social capital as a risk-coping device in rural communities of India's Andhra Pradesh state. Focusing on health outcomes among children between the ages of 1 and 9, I test whether social capital serves as an insurance mechanism and helps households minimize the negative impact of income shocks. Negative shocks considered are of two types: individual-household level shocks and common (or aggregate) shocks affecting more than one household.