TY  - RPRT
        AU  - Grimm, Michael
AU  - Hartwig, Renate
AU  - Lay, Jann
        TI  - Does Forced Solidarity Hamper Investment in Small and Micro Enterprises?
        PY  - 2013/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 7229
        UR  - https://www.iza.org/index.php/publications/dp7229
        AB  - Sharing is a norm in many societies. We present a theoretical model on the trade-off between sharing and investment which we test on data from tailors in Burkina Faso. The empirical results support the idea that there are two behavioural patterns: entrepreneurs following an 'insurance regime' comply with sharing norms, are insured but reduce investment in their firm, whereas entrepreneurs in the 'growth regime' are not insured but take undistorted investment decisions. The choice of regime depends on the redistributive pressure, the willingness to take risk, and the return on investment.
        KW  - micro and small enterprises
KW  - investment
KW  - informal insurance
KW  - forced solidarity
KW  - sharing
KW  - Sub-Saharan Africa
        ER  -