We show that the joint liability lending contracts derived in Ghatak (2000) violate an ex post incentive-compatibility constraint which says the amount of joint liability cannot exceed the amount of individual liability. We derive and characterize optimal separating joint liability contracts...

This paper examines a randomized intervention in Delhi, India, that provided unconditional cash transfer to a group of households as a replacement for food security by means of a below poverty line card. A special feature of our study is that our experiment allows to differentiate between...