We re-examine the Lewis undermigration by studying a two-sector model in which there is a trade-off between higher productivity in the modern sector and better information in the traditional sector. The consequent presence of well-functioning local insurance markets in the traditional sector and...

We examine the interactions between different institutional arrangements in a general equilibrium model of a modernizing economy. There is a modern sector, where productivity is high but information asymmetries are large, and a traditional sector where productivity is low but information...

We examine the impact of offering conditional cash transfer (CCT) beneficiaries the choice to receive cash transfers in bank accounts instead of cash. We investigate the effects on savings behavior and downstream outcomes such as assets and trust. We find, on average, no significant impact on...

This paper models economic development as a process of institutional transformation by focusing on the interplay between agents' occupational decisions and the distribution of wealth. Because of capital market imperfections, poor agents choose working for a wage over self-employment, and wealthy...