We study the social allocation of resources to the alteration of preferences. Such taste changes are Pareto-preferred if, according to both the original and the new taste regime, the resource allocation resulting from the taste change constitutes an improvement. According to this criterion, a...

This paper studies the evolution of self-enforcing reciprocity norms in a developing economy with weak property rights. In the model, children are viewed as investments in old-age support. In order to increase support in their old age, parents attempt to instill preferences for reciprocity in...

This note reconsiders a theoretical result asserted to explain the success of group lending programs in LDCs. It has been claimed that if groups are allowed to form themselves, risky and safe borrowers will sort themselves into relatively homogenous groups. This "positive assortative matching"...