Machine generated contents note: Acknowledgements * Contents * List of Tables and Figures * Introduction * PART I * Beyond Modernism and Postmodernism * Theories of reflexivity * Reflexivity and Development Economics* PART II * Introduction to the case-studies * Vanuatu: The Anti-Crusoe Economy...

How does technological progress in financial intermediation affect the economy? To address this question a costly-state verification framework is embedded into a standard growth model. In particular, financial intermediaries can invest resources to monitor the returns earned by firms. The...