Does Finance Make Us Less Social?

Henrik Cronqvist (First Author), Mitch Warachka (Participant Author), Fang Yu (Participant Author)

科研成果: 期刊稿件期刊论文

14 下载量 (Pure)


Informal risk sharing within social networks and formal financial contracts both enable households to manage risk. We find that financial contracting reduces participation in social networks. Specifically, increased crop insurance usage decreased local religious adherence and congregation membership in agricultural communities. Our identification utilizes the Federal Crop Insurance Reform Act of 1994 that doubled crop insurance usage nationally within a year, although changes in usage varied across counties. Difference-in-difference and Spatial First Difference tests confirm that households substituted insurance for religiosity. This substitution was associated with reductions in crop diversification and crop yields, indicating an increase in moral hazard.
文章编号PII S0022109022000722
期刊Journal of Financial and Quantitative Analysis
早期在线日期18 7月 2022
已出版 - 2022

Corresponding author email

Project sponsor

Chapman University
China Europe International Business School
Erasmus University


  • SSCI
  • ABDC-A*
  • FT


探究 'Does Finance Make Us Less Social?' 的科研主题。它们共同构成独一无二的指纹。