where households supplying labor and households hiring labor face weather risk. Consistent with theoretical predictions, we …

We present a framework for the study of risk and return of household enterprise in developing economies. We make … predictions from two polar benchmarks: (1) an economy with Pareto optimal allocations under full risk sharing, and (2) an economy … in which each autarky household absorbs risk in isolation. The full risk-sharing benchmark delivers the prediction that …

Recent evaluations of traditional microfinance loans have found no significant impacts on borrower incomes or … insignificant and highly dispersed effects. We argue this was because TRAIL agents selected borrowers that were low-risk and highly …

to farmer investment is uninsured risk: when provided with insurance against the primary catastrophic risk they face … insurance are consistent with the presence of important basis risk associated with the index insurance, with imperfect trust …

Poverty is often characterized not only by low and unstable income, but also by heavy debt burdens. We find that …

Theory and evidence have raised concerns that microcredit does more harm than good, particularly when offered at high … microcredit causes harm. …

collective bias in agents' expectations. Agents in the model make risk management decisions with incomplete knowledge. They … protective actions -- decreasing risk exposures, hoarding liquidity, locking-up capital -- that reflect a flight to quality …