Kaboski and Townsend use a structural model to understand, predict, and evaluate the impact of an exogenous microcredit intervention program, the Thai Million Baht Village Fund. They model household decisions in the face of borrowing constraints, income... Read more>>

Townsend and Pawasutipaisit use detailed income, balance sheet, and cash flow statements constructed for households in a long monthly panel in an emerging market economy, as well as contributions in economic theory, to document and better understand the... Read more>>

This review provides a common framework for researchers thinking about the next generation of micro-founded macro models of growth, inequality, and financial deepening, as well as direction for policy makers targeting microfinance programs to alleviate... Read more>>

In this paper, Townsend and Ueda address the controversial issue of financial liberalization. Using data from Thailand from 1976 to 1996, the authors find sizable welfare gains from liberalization, though the gain in economic growth is ambiguous. They... Read more>>

Unique in its approach and in the variety of methods and data employed, this book is the first of its kind to provide an in-depth evaluation of the financial system of Thailand, a proto-typical Asian developing economy. Using a wealth of primary source... Read more>>

In this working paper, Hansen and Sargent address issues of decision-making under uncertainty. Uncertainty is particularly pervasive in decision-making by entrepreneurs, investors, and policy makers, yet it can be difficult to build probability models... Read more>>

This investigation proposes a conceptual framework for measurement necessary for an analysis of household finance and economic development. Samphantharak and Townsend build on and, where appropriate, modify corporate financial accounts to create balance... Read more>>

Townsend and Urzua study the impact that financial intermediation can have on productivity through the alleviation of credit constraints in occupation choice and/or an improved allocation of risk. They bring together both static and dynamic structural... Read more>>

Cunha and Heckman formulate and estimate models of the evolution of cognitive and non-cognitive skills over the lifecycle and explore the role that family plays in shaping the development of these skills. The authors place special emphasis on skill formation... Read more>>

Small and informal firms account for a large share of employment in developing countries. The rapid expansion of microfinance services is based on the belief that these firms have productive investment opportunities and can enjoy high returns to capital... Read more>>

Is the vast army of the self-employed in low income countries a source of employment generation? This paper uses data from surveys in Sri Lanka to compare the characteristics of own account workers (non-employers) with wage workers and with owners of... Read more>>

This paper examines the three distinct arguments about the special economic role of the middle class that are traditionally made. In one, new entrepreneurs armed with a capacity and a tolerance for delayed gratification emerge from the middle class and... Read more>>

In this paper, Duflo, Kremer and Robinson examine returns from fertilizer in Kenya. Agricultural economists have stressed the importance of fertilizer, yet the increases in productivity have not been measured. The authors conduct a series of demonstration... Read more>>

In this in-depth look at theories of wealth creation, the authors develop a method of growth accounting based on the integrated use of transitional growth models and micro data to explain the sources of total factor productivity (TFP) growth. TFP growth... Read more>>

Banerjee and Duflo examine the factors that distinguish individuals who have had some success at wealth creation (the middle class) from those who have not (the lower class). The authors find many similarities between the middle class and the poor. They... Read more>>