Friends vs. Colleagues: Disentangling Social and Professional Network Transmissions of Agricultural Risk

We are pleased to welcome Bruno Wichmann (University of Alberta) to our department.

Abstract:
Crop failure poses a critical threat to rural households in developing economies, where limited access to formal insurance and credit markets leaves farmers vulnerable to shocks. Many studies emphasize the role of social networks in risk management, but often aggregate different types of relationships. This paper distinguishes between friendship and professional networks, showing that while professional networks can amplify risk transmission, friendship networks may act as buffers. The findings are based on primary data from smallholder farmers in rural India.