This paper shows that an asymmetric group debt contract, where one borrower co-signs for another, but not vice versa, leads to heterogeneous matching. The analysis suggests that micro finance organizations can achieve the first best by offering asymmetric group contracts.

This paper presents a theoretical description of some of the recent developments in the financial programs offered by microfinance institutions (MFIs). We show that even under for-profit MFIs, there is not necessarily a crowding out of the poorest microentrepreneurs, and that MFIs may optimally...

Nanotechnology is becoming increasingly important for the food sector, and advances and products are already being made in the areas of food packaging and food safety. However, there are several potential issues associated with the commercialization of agricultural and food (agrifood)...

This paper analyzes stochastic productive pollution within a model of endogenous growth. The extent to which the agents perceive their individual influence on aggregate pollution is parameterized. Recursive preferences allow for the separation between intertemporal substitutability and risk...

Taking note of the wide variety and growing list of models in the literature to explain patterns of behavior observed in laboratory experiments, this paper identifies two tests, the Variety Test (ability of a model to explain outcomes under variety or alternative scenarios) and the Psychological...

Information asymmetries are important in theory but difficult to identify in practice. We estimate the empirical importance of adverse selection and moral hazard in a consumer credit market using a new field experiment methodology. We randomized 58,000 direct mail offers issued by a major South...

Irreversible benefits favor an earlier introduction of GM crops versus a later one. A non-trivial question is if they also weigh more than reversible benefits similar to irreversible costs but in the opposite direction. In this contribution, I will show that indeed irreversible benefits do weigh...

Penang has always been a focal point, absorbing knowledge (and popular culture) from civilizations to the East and West. In modern Penang the pattern of cultural contacts has changed over time. Research institutes and universities in Penang cooperate with foreign partners to produce research...

Regional science policy aims at the creation of productive knowledge clusters, which are central places within an epistemic landscape of knowledge production and dissemination, K-clusters are said to have the organisational capability to drive innovations and create new industries. The following...

The recent phase of globalization has witnessed increasing influence of Asian countries in the global economy. This is supported by the rise of Asian firms and their increasing presence in economic activities across the globe through innovations in manufacturing. This paper attempts to trace the...