We estimate the benefits (in terms of savings to end-users) resulting from an improved interconnectivity in the Italian electricity spot market. The market is currently divided into two geographic zones - North and South - with limited inter-zonal transmission capacity that often induces...

We consider group formation in the joint liability setting in microfinance. Joint liability imposes additional liability of having to repay for group partners should they fail to repay. Multiple group membership allows diversification of that risk, and therefore, is welfare enhancing for risk...