We examine group-lending under sequential financing. In a model with moral hazard, social capital and endogenous group formation, we identify conditions such that sequential financing with joint liability leads to positive assortative matching between borrowers with and without social capital...

In comparison to the standard literature on inequality and growth which assumes the former to be exogenous, we formulate a model in which inequality and growth are both endogenous. Furthermore, long-run distribution, at least locally, is shown to be independent of the initial distribution of...

We study an economy where a collection of indivisible goods are sold to a set of buyers who want to buy at most one good. We characterize the set of Walrasian equilibrium price vectors in such an economy using sets of overdemanded and underdemanded goods. Further, we give characterizations for...

This paper examines the effect of an increase in vertical diversity in workers' skill on the long run growth rate of an economy. It uses a two-secror model where the techonology of the consumption-good sector is supermodular and that of the R&D sector is submodular. By adopting Grossman and...

Using data on the IIM-Ahmedabad's 2006 batch of MBA graduates, we find that SC/ST (Scheduled Caste or Scheduled Tribe) graduates get significantly lower wages (between 19 and 35 percent depending on the exchange rate used to convert foreign currencies) than those in the general category. This...

We present a new adjustment rule for interrupted cricket matches that equalizes the probability of winning before and after the interruption. Our proposal differs from existing rules in the quantity preserved (the probability of winning), and also in the point at which it is measured (the time...

This paper examines a marriage market with externality. We first develop an appropriate notion of stability for this market, called E-stability. We provide an example to show that an E-stable outcome need not exist. We then derive conditions under which an E-stable outcome exists.

Community management of forests by Van Panchayats (forest councils) to meet local needs has a long history in the Indian Central Himalayas. This essay examines the effects of village-level heterogeneity in caste and land ownership, and of female membership in the Panchayats on collective action...

Despite the decline in group inequality and the rapid expansion of the black middle class in the United States, major urban centers with significant black populations continue to exhibit extreme levels of racial separation. Using a theoretical framework in which individuals care both about the...

We study the effect of capital controls on the level of investment in human capital and the resulting growth path of an economy. The economy consists of two groups of agents based on the ownership of factors of production. One type of agents - called workers - own human capital and bequeath...