Kaboski, Joseph Paul; Lipscomb, Molly; Midrigan, Virgiliu; … - National Bureau of Economic Research - 2022
Theoretically, indivisible investments together with financial frictions can lower development, generate poverty traps, and lead agents to become risk-loving. Using experimental cash grants involving a choice between a safer, low payoff and a riskier, large payoff lottery, we find that 27...