This article compares the distortions associated with alternative intergovernmental allocation rules when a central authority provides inputs for the provision of social services by local governments, as well as when local governments differ in their needs. Under a quantity-based mechanism, the...

We explore the impact of reduced transaction costs on risk sharing by estimating the effects of a mobile money innovation on consumption. In our panel sample, adoption of the innovation increased from 43 to 70 percent. We find that, while shocks reduce consumption by 7 percent for nonusers, the...