The authors test how well consumption is insured against income risk in a panel of sampled households in rural China. They estimate the risk insurance models by Generalized Method of Moments, treating income and household size as endogenous. Insurance exists for all wealth groups, although the...

It is widely assumed that pervasive credit market failures mean that a person's current wealth is critical to whether or not that person can take up opportunities to start a new business. The authors show that inequality in wealth can be either good or bad for the level of entrepreneurship in an...

The authors assess whether the placement of bank branches in Bangladesh responds to unexploited potential for nonfarm rural development. They compare the branch location choicesof a large new private nonprofit bank, the famous Grameen Bank, with those of more traditional government banks. They...

Does risk perpetuate poverty in a credit-constrained economy? Jalan and Ravallion study portfolio and other behavioral responses to measured risk using household panel data for rural China. One-quarter of wealth is held in unproductive liquid forms. But only a small share of this appears to be a...

The decollectivization of agriculture in Vietnam was a crucial step in the country's transition to a market economy. But the assignment of land use rights had to be decentralized, and local cadres ostensibly had the power to corrupt this process. The authors assess the realized land...

Transfers to the rural land-poor are widely advocated and used in attempts to reduce rural poverty. Such transfers are believed to be productive, in that the final gain to the poor exceeds the initial transfer. The evidence cited most often to support this view is the negative correlation...

Among developing countries, the"Employment Guarantee Scheme"(EGS) in the state of Maharashtra in India is probably the most famous and most successful direct governmental effort at reducing absolute poverty in rural areas. Since the mid-1970s, EGS has aimed to offer unskilled rural employment on...

In theory, it is possible that the persistent poverty that has emerged in many transition economies, is attributable to underlying, non-convexities in the dynamics of household incomes - such that a vulnerable household will never recover from a sufficiently large, but short-lived shock to its...

The widely held view that larger families tend to be poorer in developing countries has influenced research and policies. But the basis for this"stylized fact"is questionable, the authors argue. Widely cited evidence of a strong negative correlation between size and consumption per person is...

This paper discusses the effect that changes in individual incomes have on aggregate undernutrition. Undernutrition depends not only on nutrient intakes but on other factors, including nutrient requirements - which may differ widely amongst people. The author offers an approach to measuring the...