We develop and estimate a model of dynamic interactions in which commitment is limited and contracts are incomplete to explain the patterns of income and consumption growth in village economies of less developed countries. Households can insure each other through both formal contracts and...

We propose an approach for Bayesian inference in \TV SVARs identified with sign restrictions. The linchpin of our approach is a class of rotation-invariant \TV SVARs in which the prior and posterior densities of any sequence of structural parameters belonging to the class are invariant to...