A common problem in agricultural credit markets in developing countries is the coexistence of a competitive market equilibrium interest rate and credit rationing. The literature typically explains the existence of credit rationing in competitive credit markets using adverse selection and moral...

Using a principal-agent model, we find the optimal subsidy contract that induces grower compliance with Bt corn refuge requirements for managing insect resistance when asymmetric information exists concerning grower behavior. The optimal contract balances the cost of monitoring and the benefit...

The current Food Stamp Program uses fixed benefit payments that do not provide incentives for participants to improve their nutrient intake. This paper examines an alternative contract using a transfer that increases with expenditures on high nutrient foods as a way to increase nutrient intake...