When contracts are incomplete, relationship-specific investments may be underprovided due to the threat of opportunistic expropriation or holdup. The authors find evidence of such underinvestment on tenanted land in rural Pakistan. Using data from households cultivating multiple plots under...

Can communal heterogeneity explain persistent educational inequities in developing countries? The paper uses a novel data-set from rural Pakistan that explicitly recognizes the geographic structure of villages and the social makeup of constituent hamlets to show that demand for schooling is...

In a setting where husbands wield considerable coercive power, forms of marriage should adapt to protect the interests of women and their families. The authors study the pervasive marriage custom of watta satta in rural Pakistan, a bride exchange between families coupled with a mutual threat of...

Although sharecropping has long fascinated economists, the determinants of this contractual form are still poorly understood and the debate over the extent of moral hazard is far from settled. The authors address both issues by emphasizing the role of landlord supervision. When tenant effort is...

Commitment failure lies at the core of incomplete contract theory, yet its quantitative significance has rarely been assessed. Using detailed plot-level data from rural Pakistan, we find that non-contractible investment is underprovided on tenanted land, even after controlling for the...

Though sharecropping remains widespread, its determinants are still poorly understood and the debate over the extent of moral hazard is far from settled. We address both issues by analyzing the role of landlord supervision. When landlords vary in their cost of supervision, otherwise identical...

Can marriage institutions limit marital inefficiency? We study the pervasive custom of watta satta in rural Pakistan, a bride exchange between families coupled with a mutual threat of retaliation. Watta satta can be seen as a mechanism for coordinating the actions of two sets of parents, each...

Does decentralizing the allocation of public resources reduce rent-seeking and improve equity? This paper studies a governance reform in Pakistan's vast Indus Basin irrigation system. Using canal discharge measurements across all of Punjab province, the analysis finds that water theft increased...

Surface irrigation is a common pool resource characterized by asymmetric appropriation opportunities across upstream and downstream water users. Large canal systems are also predominantly managed by the state. This paper studies water allocation under an irrigation bureaucracy subject to...