We consider a nonlinear pricing model, in which consumers' marginal willingness to pay and absolute ability to pay are noncontractible, to explain the nonlinearity of unit prices of basic food items (bulk discounting) in developing countries. We allow consumers to face binding budget-constraints...

Female labour force participation and labour supply, in the US, as in many other developed countries, has changed dramatically over the last 30 years. If one compares cohorts of women born in the 1930s (such as Elizabeth Dole), 1940s (Hillary Clinton) and 1950s (Oprah Winfrey), two main features...

The complete insurance hypothesis is soundly rejected by the data (e.g. Attanasio and Davis, 1996). On the other hand, the permanent income model assumes that the only mechanism available to the agents to smooth consumption is personal savings (self insurance). Those are clearly two extreme...