Many developing countries pursue policies that treat large and small firmsdifferently. For example, large firms may be subject to a value added tax whilesmall firms are explicitly exempted. Moreover, governments often find itimpractical to collect taxes from the smallest enterprises; this may...

This paper uses a structural model to understand, predict, and evaluate the impactof an exogenous microcredit intervention program, the ThaiMillion Baht Village Fundprogram. We model household decisions in the face of borrowing constraints, incomeuncertainty, and high-yield indivisible...