It is normally taken for granted that in the underdeveloped economy of India, people below the poverty line and the poor farmers need lots of doles, subsidy, support of formal institutions and market supportive mechanism to ameliorate their condition. The so called green revolution in...

This paper explores the link between poverty and resource allocation, including the management of natural resources, by chronically indebted rural smallholders in developing countries. The paper proposes a formal intertemporal model of a credit constrained farm household that can invest in...