RT Journal Article SR Electronic T1 Distinguishing Barriers to Insurance in Thai Villages JF Journal of Human Resources JO J Hum Resour FD University of Wisconsin Press SP 44 OP 78 DO 10.3368/jhr.57.1.0219-10067R1 VO 57 IS 1 A1 Kinnan, Cynthia YR 2022 UL http://jhr.uwpress.org/content/57/1/44.abstract AB Informal insurance is an important risk-coping mechanism in developing countries, yet this risk sharing is incomplete. Models of limited commitment, moral hazard, and hidden income have been proposed to explain incomplete informal insurance. This work shows that the way history matters in forecasting consumption can be used to distinguish hidden income from limited commitment and moral hazard. The paper also develops a nonparametric test that is robust to nonclassical measurement error and individual–level heterogeneity. In panel data from rural Thailand, limited commitment and moral hazard are rejected. The predictions of the hidden income model are supported by the data.