Using a unique panel data set for rural households in Zimbabwe we estimate a microeconomic model of growth under uncertainty, a stochastic version of the Ramsey model with livestock as the single asset. We use the estimation results in simulation experiments (over a 20-year period) to quantify...

There has been a revival of interest in the effect of risk on economic growth. We quantify both ex ante and ex post effects of risk using a stochastic version of the Ramsey model. We develop a simulation-based econometric methodology which allows us to estimate the model in the structural form...

Using a unique panel data set for rural households in Zimbabwe we estimate amicroeconomic model of growth under uncertainty, a stochastic version of the Ramsey modelwith livestock as the single asset. We use the estimation results in simulation experiments(over a 20-year period) to quantify the...

There has been a revival of interest in the effect of risk on economic growth. We quantify both ex ante and ex post effects of risk using a stochastic version of the Ramsey model. We develop a simulation-based econometric methodology which allows us to estimate the model in the structural form...

We examine the explicit use of social relationships as collateral against loan default, a core feature of modern microfinance. What structural factors determine whether borrower relationships serve as an effective security? Through a rich combination of data on microfinance clients in Sierra...