This review examines portions of the vast literature on rural financial markets and household behavior in the face of risk and uncertainty and limited commitment. In addition to examining household strategies and bilateral contracting we place particular emphasis on studying the important role...

The Agricultural Development Bank of Pakistan (ADBP), which provides most formal loans in Pakistan's rural areas, lends to largeholders far more than to smallholders, although the impact of credit is greater for the smallholders. Targeting credit to smallholders would make ADBP's credit scheme...