Many basic economic theories with perfectly functioning markets do not predict the existence of the vast number of microenterprises readily observed across the world. We put forward a model that illuminates why financial and managerial capital constraints may impede experimentation, and thus...

Intensified use of agricultural inputs, particularly fertilizer, is a possible route to improved agricultural productivity. Field trials of these technologies show substantial increases in yields, but typically are done on highly monitored experimental plots rather than by farmers themselves

The investment decisions of small‐scale farmers in developing countries are conditioned by their financial environment. Binding credit market constraints and incomplete insurance can reduce investment in activities with high expected profits. We conducted several experiments in northern Ghana...