Development Economics

Transcription

1 Development Economics Bocconi University Diego Ubfal Outline of the course This course will cover both seminar papers and recent research on development microeconomics. The goal is to introduce students to the literature and familiarize them with the main current research methods and questions in the field. After an introduction on the big macro questions and motivating facts including a discussion on poverty traps, the course will focus on key topics in the microeconomics of development. We will discuss the different hypotheses that can explain low investment levels in human capital (health, education and nutrition) and on agricultural inputs. Then, we will focus on the most recent developments related to microfinance (credits, savings and insurance). The course will also include papers at the intersection between behavioral economics and development, with focus on self-control problems. Course Prerequisites Microeconomics and Econometrics (including Microeconometrics) are strongly recommended. The other courses in the Development and Institutions sequence will be great complements to this course. Grades: Research Proposal (50%) Class Participation (20%) One Paper Presentation (30%)

2 Each student will pick one topic related to the course and provide a short critical survey of the literature, pointing the main problems discussed and a detailed analysis of one topic for future research. Reading List The course will study articles and recent working papers (see long reading list below). It will not follow one specific textbook, but the following ones can be excellent material to consult: Abhijit Banerjee and Esther Duflo, Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty Abhijit Banerjee, Roland Bénabou and Dilip Mookherjee, Understanding Poverty Pranab Bardhan and Chris Udry, Development Microeconomics Debraj Ray, Development Economics Schedule Lecture Date Topic 1 Tue 12/2 Introduction 2 Thu 14/9 Tools 3 Tue 19/2 Poverty Traps + Nutrition 4 Thu 21/2 Nutrition (2) 5 Tue 26/2 Health 6 Thu 28/2 Agricultural Investments 7 Tue 05/3 Education 1 8 Thu 07/3 Education 2 9 Tue 12/3 Credit 10 Thu 14/3 Microcredit 11 Tue 19/3 Savings 12 Thu 21/3 Insurance

3 Reading List Note: the following references are provided as a detailed list of the papers cited in class. Students are not expected to read all of them for this course. The material required for the class will be the one we discuss in depth, and students are expected to read it before each lecture. It is marked with two asterisks (**); papers marked with one asterisk (*) are also going to be covered in class, but in less detail. 1. Introduction Acemoglu, Daron, Simon Johnson and James Robinson (2001) The Colonial Origins of Comparative Development: An Empirical Investigation. American Economic Review, Alvarez, Fernando, Francisco Buera and Robert Lucas (2014) Ideas Flows, Economic Growth and Trade. Working Paper. **Banerjee, Abhijit and Esther Duflo (2007) The Economic Lives of the Poor. Journal of Economic Perspectives 21 (1): Working paper version with all the tables: Banerjee, Abhijit and Esther Duflo (2007) The Economic Lives of the Poor. CEPR Discussion Papers 5968, C.E.P.R. Discussion Papers. Banerjee, Abhijit and Andrew Newman (1993) Occupational Choice and the Process of Development. Journal of Political Economy 101(2): Bils, Mark and Peter Klenow (2000) Does Schooling Cause Growth?" American Economic Review 90(5): Bourguignon, Francois and Christian Morrisson (2002) Inequality Among World Citizens: American Economic Review 92(4): Caselli, Francesco (2005) Accounting for Cross-Country Income Differences. Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 9, pages Elsevier. Deaton, Angus (2005) Measuring Poverty in a Growing World (or Measuring Growth in a Poor World). Review of Economics and Statistics 87 (1): *Deaton, Angus and Olivier Dupriez (2011) Purchasing Power Parity Exchange Rates for the Global Poor." American Economic Journal: Applied Economics 3(2): Dollar, David and Aart Kraay (2002) Growth Is Good for the Poor." Journal of Economic Growth 7(3):

4 Engerman, Stanley and Kenneth Sokoloff (2000) Institutions, Factor Endowments, and Paths of Development in the New World." Journal of Economic Perspectives 14(3): Galor, Oded and Joseph Zeira (1993) "Income Distribution and Macroeconomics." Review of Economic Studies 60(1): Klenow, Peter and Andres Rodriguez-Clare (1997) "Economic growth: A review essay." Journal of Monetary Economics 40(3): Mankiw, Gregory, David Romer, and David Weil (1992) A Contribution to the Empirics of Economic Growth. The Quarterly Journal of Economics 107(2): Mookherjee, Dilip and Debraj Ray (2003) Persistent Inequality. Review of Economic Studies 70(2): Piketty, Thomas and Emmanuel Saez (2003) Income Inequality In The United States, " The Quarterly Journal of Economics: 118(1): *Pritchett, Lant (1997) Divergence, Big Time. Journal of Economic Perspectives 11 (3): Rodrik, Dani, Arvind Subramanian and Francesco Trebbi (2004) Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development." Journal of Economic Growth 9(2): *Sala-i-Martin, Xavier (2006) The World Distribution Of Income: Falling Poverty And... Convergence, Period. Quarterly Journal of Economics 121 (2): Sen, Amartya (2001) Development as Freedom, Oxford University Press. 2. Tools Lecture Notes for Microeconometrics. Diego Ubfal, September 2013, Bocconi University. 3. Poverty Traps Azariadis, Costas and Allan Drazen (1990) Threshold externalities in economic development. Quarterly Journal of Economics 105: *Azariadis, Costas and John Stachurski (2005) Poverty Traps. In Volume 1 of Handbook of Economic Growth, Chapter 5. Editors Philippe Aghion and Steven Durlauf. Elsevier. Banerjee, Abhijit and Sendhil Mullainathan (2010) The Shape of Temptation: Implications for the Economic Lives of the Poor. NBER Working Papers

5 Banerjee, Abhijit and Andrew Newman (1993) Occupational choice and the process of development. Journal of Political Economy 101: Bardhan, Pranab (1997) Corruption and development: a review of the issues. Journal of Economic Literature 35: Dasgupta, Partha (2003) World poverty: causes and pathways. Mimeo, University of Cambridge. Durlauf, Steven (2004) Neighborhood effects. In Handbook of Urban and Regional Economics (J.V. Henderson and J.F. Thisse, eds.). Fafchamps, Marcel, David McKenzie, Simon Quinn, and Christopher Woodruff (2011) When is Capital Enough to Get Female Enterprises Growing? Evidence From a Randomized Experiment in Ghana. The World Bank, Policy Research Working Paper Series Galor, Oded and Joseph Zeira (1993) Income distribution and macroeconomics. Review of Economic Studies 60: Ghatak, Maitreesh and Neville Nien-Huei Jiang (2002) A simple model of inequality, occupational choice, and development. Journal of Development Economics 69(1): Hoff, Karla and Amartya Sen (2004) The kin system as a poverty trap, in Poverty Traps, (S. Bowles, S. Durlauf and K. Hoff, eds.). Jakiela, Pamela and Owen Ozier (2011) Does Africa Need a Rotten Kin Theorem? Experimental Evidence from Village Economies. Mimeo, University of Washington at St Louis. *Matsuyama, Kiminori (2008) "Poverty Traps." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, Mookherjee, Dilip and Debraj Ray (2003) Persistent inequality. Review of Economic Studies 70: Murphy, Kevin, Andrei Shleifer and Robert Vishny (1989) Industrialization and the big push. Journal of Political Economy 97: Platteau, Jean-Philippe (2000) Institutions, Social Norms and Economic Development. Amsterdam: Harwood Publishers. Romer, Paul (1986) Increasing returns and long-run growth. Journal of Political Economy 94 (5): Rosenstein-Rodan, Paul (1943) The problem of industrialization of eastern and south-eastern Europe. Economic Journal 53:

6 4. Nutrition Bliss, Christopher and Nicholas Stern (1978) Productivity, wages and nutrition, I: the theory. Journal of Development Economics 5: **Dasgupta, Partha and Debraj Ray (1986) Inequality as a Determinant of Malnutrition and Unemployment: Theory. The Economic Journal 96: *Deaton, Angus and Jean Dreze (2009) Food and Nutrition in India: Facts and Interpretations. Economic and Political Weekly 44, Mirrlees, James (1975) A pure theory of underdeveloped economies. In Agriculture in Development Theory (ed. L. Reynolds). New Haven, Connecticut: Yale University Press. Stiglitz, Joseph (1976) The efficiency wage hypothesis, surplus labour and the distribution of income in LDC's. Oxford Economic Papers 28: From Income to Nutrition Atkin, David (2009) Working for the future: female factory work and child health in Mexico. Unpublished Manuscrip, Yale University. Banerjee, Abhijit, Esther Duflo, Raghabendra Chattopadhyay and Jeremy Shapiro (2011) Targeting the hard core poor: an impact assessment. Working Paper. *Behrman, Jere and Anil Deolalikar (1987) Will Developing Country Nutrition Improve with Income? A Case Study for Rural South India." Journal of Political Economy 95: *Haushofer, Johannes and Jeremy Shapiro (2013) Household Response to Income Changes: Evidence from an Unconditional Cash Transfer Program in Kenya. Working Paper. *Jensen, Robert and Nolan Miller (2008) Giffen Behavior and Subsistence Consumption. American Economic Review 98: **Jensen, Robert and Nolan Miller (2011) Do Consumer Price Subsidies Really Improve Nutrition? Review of Economics and Statistics 93(4): *Jensen, Robert and Nolan Miller (2012) A Revealed Preference Approach to Measuring Hunger and Undernutrition Mimeo, UCLA. **Subramanian, Shankar and Angus Deaton (1996) The Demand for Food and Calories. Journal of Political Economy 104:

7 Zhai, Fengying, Xuguang Guo, Barry Popkin, Linmao Ma, Qing Wang, Wentao Yu, Shuigao Jin, and Keyou Ge (1996) The Evaluation of the 24-Hour Individual Recall Method in China. Food and Nutrition Bulletin 17(2): From Nutrition to Productivity Almond, Douglas, Lena Edlund, Hongbin Li and Junsen Zhang (2007) Long-term effects of the China famine: Mainland China and Hong Kong. NBER Working Paper Banerjee, Abhijit, Esther Duflo, Gilles Postel-Vinay and Tim Watts (2007) Long Run Impacts of Income Shocks: Wine and Phylloxera in 19th Century France." CEPR Discussion Papers Basta, Samir, Darwin Soekirman and Nevin Scrimshaw (1979) Iron deficiency anemia and productivity of adult males in Indonesia. American Journal of Clinical Nutrition 32: Duflo, Esther (2003) Grandmothers and Granddaughters: Old-Age Pensions and Intrahousehold Allocation in South Africa." World Bank Economic Review 17(1): Field, Erica, Omar Robles and Maximo Torero (2009) Iodine Deficiency and Schooling Attainment in Tanzania. American Economic Journal: Applied Economics 1: Meng, Xin and Nancy Qian (2009) The Long Term Consequences of Famine on Survivors: Evidence from a Unique Natural Experiment using China's Great Famine." NBER Working Papers *Strauss, John (1986) Does Better Nutrition Raise Farm Productivity? Journal of Political Economy 94: *Strauss, John and Duncan Thomas (2008) Health over the life Course. Handbook of Development Economics 4 (1): *Thomas, Duncan, Frankenberg, E., Friedman, J., Habicht, J.-P., Ingwersen, N., McKelvey, C., Hakimi, M., Jaswadi, P., Jones, N., Sikoki, B., Pelto, G., Seeman, T., Smith, J.P., Sumantri, C., Suriastini,W.,Wilopo, S. (2006) Causal effect of health on labor market outcomes: Experimental evidence. Mimeo, UCLA. 5. Health *Ashraf, Nava, James Berry and Jesse Shapiro (2010) Can Higher Prices Stimulate Product Use? Evidence from a Field Experiment in Zambia. American Economic Review 100(5):

8 Ashraf, Nava, Erica Field and Jean Lee (2010b) Household Bargaining and Excess Fertility: An Experimental Study in Zambia. Mimeo, Harvard University. *Banerjee, Abhijit, Angus Deaton and Esther Duflo (2004) Health Care Delivery in Rural Rajasthan. Economic and Political Weekly 39(9): Banerjee, Abhijit, Esther Duflo, Rachel Glennerster, and Dhruva Kothari (2010) Improving Immunization Coverage in Rural India: A Clustered Randomized Controlled Evaluation of Immunization Campaigns with and without Incentives. British Medical Journal 340: Bleakley, Hoyt (2009) Economic Effects of Childhood Exposure to Tropical Disease. American Economic Review, 99(2): *Cohen, Jessica and Pascaline Dupas (2010) Free Distribution or Cost-Sharing? Evidence from a randomized malaria experiment. Quarterly Journal of Economics 125(1): Cohen, Jessica, Simone Schaner and Pascaline Dupas (2013) Price Subsidies, Diagnostic Tests, and Targeting of Malaria Treatment NBER Working Paper # Cutler, David, Angus Deaton and Adriana Lleras-Muney (2006) "The Determinants of Mortality." Journal of Economic Perspectives 20(3): Cutler, David and Grant Miller (2005) The Role of Public Health Improvements in Health Advances: The Twentieth-Century United States. Demography 42:1: Devoto, Florencia, Esther Duflo, Pascaline Dupas, William Pariente and Vincent Pons (2012) Happiness on Tap: Piped Water Adoption in Urban Morocco. American Economic Journal: Economic Policy 4(4): *Dupas, Pascaline (2012) Short-Run Subsidies and Long-Run Adoption of New Health Products: Evidence from a Field Experiment. Working Paper. **Dupas, Pascaline (2012) Global Health Systems: Pricing and User Fees. Prepared for the Encyclopedia of Health Economics **Dupas, Pascaline (2011) Health Behavior in Developing Countries. Annual Review of Economics 3: Dupas, Pascaline (2009) What matters (and what does not) in households decision to invest in malaria prevention? American Economic Review 99(2): Gallup, John Luke, and Jeffrey Sachs (2001) The Economic Burden of Malaria. Supplement to The American Journal of Tropical Medicine & Hygiene LXIV:

9 Gine, Xavier, Dean Karlan and Jonathan Zinman (2010) Put Your Money Where Your Butt Is: A Commitment Savings Account for Smoking Cessation. American Economic Journal: Applied Economics 2(4): Guiteras, Raymond, David Levine, Thomas Polley and Brian Quirstoff (2013) Credit Constraints, Present Bias and Investment in Health: Evidence from Micropayments for Clean Water in Dhaka. Working Paper. *Kremer, Michael and Alaka Holla (2008) Pricing and Access: Lessons from Randomized Evaluations in Education and Health, in W. Easterly and J. Cohen (eds.), What Works in Development: Thinking Big and Thinking Small (Washington D.C.: Brookings Institution Press, 2009). Kremer, Michael and Edward Miguel (2007) The Illusion of Sustainability. Quarterly Journal of Economics 122 (3): *Tarozzi, Alessandro, Aprajit Mahajan, Brian Blackburn, Dan Kopf, Lakshmi Krishna, and Joanne Yoong (2013) Micro-loans, Insecticide-Treated Bednets and Malaria: Evidence from a randomized controlled trial in Orissa (India). Working Paper. Thornton, Rebecca (2008) The Demand for, and Impact of, Learning HIV Status. American Economic Review 98(5): Thornton, Rebecca, Laurel Hatt, Erica Field, Mursaleena Islam, Freddy Solís and Martha Azuzena González Moncada (2010) Social Security Health Insurance for the Informal Sector in Nicaragua: A Randomized Evaluation. Health Economics 19 (S1): Agricultural Investments *Aker, Jenny (2010) Information from Markets Near and Far: Mobile Phones and Agricultural Markets in Niger. American Economic Journal: Applied Economics 2(3): *Beaman, Lori, Dean Karlan, Bram Thuysbaert and Christopher Udry (2013) Profitability of fertilizer: Experimental evidence from female rice farmers in Mali. Forthcoming American Economic Review Papers (Papers and Proceedings Issue). Benjamin, Dwayne (1992) Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models. Econometrica 60 (2): *Cole, Shawn, Xavier Gine, Jeremy Tobacman, Petia Topalova, Robert Townsend, and James Vickery (2013) "Barriers to Household Risk Management: Evidence from India." American Economic Journal: Applied Economics 5(1): *Conley, Timothy and Christopher Udry (2010) "Learning about a New Technology: Pineapple in Ghana." American Economic Review 100(1):

10 **Duflo, Esther, Michael Kremer, and Jonathan Robinson (2011) Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya. American Economic Review 101(6): **Duflo, Esther, Michael Kremer and Jonathan Robinson (2008) How High are Rates of Return to Fertilizer? Evidence from Field Experiments in Kenya. American Economic Review Papers (Papers and Proceedings Issue) 98 (2): Giné, Xavier and DeanYang (2009) Insurance, credit, and technology adoption: field experimental evidence from Malawi. Journal of Development Economics 89(1): *Goldstein, Markus and Chirstopher Udry (2008) The Profits of Power: Land Rights and Agricultural Investment in Ghana. Journal of Political Economy 116(6): *Goyal, Aparajita (2010) "Information, Direct Access to Farmers, and Rural Market Performance in Central India." American Economic Journal: Applied Economics, 2(3): **Karlan, Dean, Robert Osei, Isaac Osei-Akoto and Christopher Udry (2012) Agricultural Decisions after Relaxing Credit and Risk Constraints. Working Paper. Singh, Inderjit, Lyn Squire, and John Strauss (1986) A Survey of Agricultural Household Models: Recent Findings and Policy Implications. The World Bank Economic Review 1(1): **Udry, Christopher (2010) The Economics of Agriculture in Africa: Notes on a Research Program. Forthcoming, African Journal of Agricultural and Resource Economics. 7. Education (2 Sessions) Akresh, Richard (2009) Flexibility of Household Structure: Child Fostering Decisions in Burkina Faso. Journal of Human Resources 44(4). Acemoglu, Daron and Joshua Angrist (2000) How Large are the Social Returns to Education? Evidence from Compulsory Schooling Laws. In National Bureau of Economics Macroeconomics Annual 2000, ed. Ben Bernanke and Kenneth Rogoff, pp Angrist, Joshua, Eric Bettinger and Michael Kremer (2006) Long-Term Educational Consequences of Secondary School Vouchers: Evidence from Administrative Records in Colombia." American Economic Review 96(3): Angrist, Joshua and Alan Krueger (1991) Does Compulsory School Attendance Affect Schooling and Earnings? The Quarterly Journal of Economics 106:

11 Angrist, Joshua and Victor Lavy (1999) Using Maimonides Rule to Estimate the Effect of Class Size on Scholastic Achievement. Quarterly Journal of Economics 114: Banerjee, Abhiji, Rukmini Banerji, Esther Duflo, Rachel Glennerster and Stuti Khemani (2010) Pitfalls of Participatory Programs: Evidence from a Randomized Evaluation in Education in India." American Economic Journal: Economic Policy 2(1): Banerjee, Abhijit, Shawn Cole, Esther Duflo and Leigh Linden (2007) Remedying Education: Evidence from Two Randomized Experiments in India. Quarterly Journal of Economics 122 (3): Barrera-Osorio, Felipe, Marianne Bertrand, Leigh Linden and Francisco Perez-Calle (2011) Improving the Design of Conditional Transfer Programs: Evidence from a Randomized Education Experiment in Colombia. American Economic Journal: Applied Economics 3(2): Berry, James (2012) Child Control in Education Decisions: An Evaluation of Targeted Incentives to Learn in India. Manuscript, Dept. Econ., Cornell University. Bursztyn, Leonardo and Lucas Coffman (2012) The Schooling Decision: Family Preferences, Intergenerational Conflict, and Moral Hazard in the Brazilian Favelas. Journal of Political Economy 120(3): *Card, David (2001) Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems. Econometrica 69(5): **Duflo, Esther (2001) Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment. American Economic Review 91(4): Duflo, Esther, Pascaline Dupas and Michael Kremer (2012a) Education, HIV, and Early Fertility: Experimental Evidence from Kenya. Working Paper. Duflo, Esther, Pascaline Dupas and Michael Kremer (2012b) School Governance, Teacher Incentives and Pupil-Teacher Ratios: Experimental Evidence from Kenyan Primary Schools. NBER Working Paper # *Duflo, Esther, Pascaline Dupas and Michael Kremer (2011) Peer Effects, Teacher Incentives, and the Impact of Tracking: Evidence from a Randomized Evaluation in Kenya. American Economic Review 101(5): **Duflo, Esther, Rema Hanna, and Stephen Ryan (2012) Incentives Work: Getting Teachers to Come to School." American Economic Review 102(4): * Foster, Andrew and Mark Rosenzweig (1996) Technical Change and Human-Capital Returns and Investments: Evidence from the Green Revolution. American Economic Review 86 (4):

12 Glewwe, Paul, Naumam Ilias and Michael Kremer (2010) Teachers Incentives. American Economic Journal: Applied Economics 2(3): Hoff, Karla and Priyanka Pandey (2006) Discrimination, Social Identity, and Durable Inequalities." American Economic Review 96(2): **Jensen, Robert (2012) Do Labor Market Opportunities Affect Young Women's Work and Family Decisions? Experimental Evidence from India." Quarterly Journal of Economics 127(2): Jensen, Robert (2010) The (Perceived) Returns to Education and the Demand for Schooling. Quarterly Journal of Economics 125(2): Kremer, Michael, Edward Miguel and Rebecca Thornton (2009) Incentives to Learn. Review of Economics and Statistics 91(3): Muralidharan, Karthik and Venkatesh Sundararaman (2010) Contract Teachers: Experimental Evidence from India. Mimeo, UC San Diego. Nguyen, Tran (2008) Information, Role Models and Perceived Returns to Education: Experimental Evidence from Madagascar. Working Paper. Oreopoulos, Philip (2006) Estimating Average and Local Average Treatment Effects of Education when Compulsory Schooling Laws Really Matter. American Economic Review 96: Pritchett, Lant (2006) Does Learning to Add up Add up? The Returns to Schooling in Aggregate Data." Handbook of the Economics of Education, Hanushek & Welch (eds.), edition 1, volume 1, number 1. Psacharopoulos, George (1994) Returns to Investment in Education: A Global Update. World Development 22 (9): Rosenzweig, Mark (1995) Why Are There Returns to Schooling? American Economic Review P&P 85 (2): Urquiola, Miguel and Eric Verhoogen (2009) Class-Size Caps, Sorting, and the Regression- Discontinuity Design. American Economic Review 99 (1):

13 Books 8. Credit Markets in Poor Countries and Microcredit (2 sessions) Armendariz, Beatriz and Jonathan Morduch (2010) The Economics of Microfinance. Cambridge, Mass.: MIT Press., 2 nd Edition. Collins, Daryl, Jonathan Morduch, Stuart Rutherford and Orlanda Ruthven (2009) Portfolios of the Poor: How the World s Poor Live on $2 a Day. Princeton, N.J.: Princeton University Press. Rutherford, Stuart (1999) The Poor and Their Money. Oxford: Oxford University Press. Papers *Aleem, Irfan (1990) Imperfect Information, Screening and the Costs of Informal Lending: A Study of a Rural Credit Market in Pakistan. World Bank Economic Review 4(3): *Angelucci, Manuela, Dean Karlan and Jonathan Zinman (2013) Win some lose some? Evidence from a randomized microcredit program placement experiment by Compartamos Banco. J-PAL working paper. *Attanasio, Orazio, Britta Augsburg, Ralph de Haas, Emla Fitzsimons and Heike Harmgart (2011) Group lending or individual lending? Evidence from a randomised field experiment in Mongolia. IFS Working Papers W11/20, Institute for Fiscal Studies. *Augsburg, Britta, Ralph de Haas, Heike Harmgart and Costas Meghir (2012) Microfinance at the margin: experimental evidence from Bosnia and Herzegovina. European Bank for Reconstruction and Development, Working Paper 146. Banerjee, Abhijit (2013) Microcredit under the microscope: What have we learnt in the last two decades, what do we need to know? Annual Review of Economics 5. Banerjee, Abhijit and Kaivan Munshi (2004) How Efficiently is Capital Allocated? Evidence from the Knitted Garment Industry in Tirupur. Review of Economic Studies 71(1): Banerjee, Abhijit, Timothy Besley and Timothy Guinnane (1994) Thy neighbour's keeper: The design of a credit cooperative with theory and a test. Quarterly Journal of Economics 109(2): Banerjee, Abhijit, Arun Chandrasekhar, Esther Duflo and Matthew Jackson (2012) "The Diffusion of Microfinance." NBER Working Papers Banerjee, Abhijit and Esther Duflo (2010) Giving Credit Where It Is Due. Journal of Economic Perspectives 24(3):

14 Banerjee, Abhijit and Esther Duflo (2008) Do Firms Want to Borrow More? Testing Credit Constraints Using a Directed Lending Program. mimeo, MIT. **Banerjee, Abhijit, Esther Duflo, Rachel Glennerster and Cynthia Kinnan (2013) The Miracle of Microfinance? Evidence from a Randomized Evaluation. NBER Working Paper Bauer, Michal, Julie Chytilova and Jonathan Morduch (2012) Behavioral Fundations of Microcredit: Experimental and Survey Evidence from Rural India. American Economic Review 102(2): Besley, Timothy and Stephen Coate (1995) Group lending, repayment incentives and social collateral. Journal of Development Economics 46(1): Bester, Helmut (1985) Screening vs. Rationing in Credit Markets with Imperfect Information. American Economic Review 75(4): Bhole, Bharat and Sean Ogden (2010) Group lending and individual lending with strategic default. Journal of Development Economics 91(2): Blattman, Christopher, Nathan Fiala and Sebastian Martinez (2013) Generating skilled selfemployment in developing countries: Experimental evidence from Uganda. Forthcoming Quarterly Journal of Economics. Bond, Philip and Ashok Rai, Ashok (2008) "Cosigned vs. group loans," Journal of Development Economics 85(1-2): Buera, Francisco, Joseph Kaboski and Yongseok Shin (2013) The Macroeconomics of Microfinance. Working Paper. Bulow, Jeremy and Kenneth Rogoff (1989) Sovereign Debt: Is to Forgive to Forget?" American Economic Review 79(1): Coleman, Brett (1999) The impact of group lending in Northeast Thailand. Journal of Development Economics 60(1): Crépon, Bruno, Florencia Devoto, Esther Duflo, and William Parienté (2011) Impact of Microcredit in Rural Areas of Morocco: Evidence from a Randomized Evaluation. MIT Working Paper. Cambridge, Mass.: MIT, March. de Janvry, Alain, Craig McIntosh and Elisabeth Sadoulet (2010) The Supply and Demand Side Impacts of Credit Market Information. Journal of Development Economics 93(2): de Mel, Suresh, David McKenzie and Christopher Woodruff (2009) Are Women More Credit- Constrained? Experimental Evidence on Gender and Microenterprise Returns. American Economic Journal: Applied Economics 1(3): 1 32.

15 de Mel, Suresh, David McKenzie and Christopher Woodruff (2008) Returns to Capital in Microenterprises: Evidence from a Field Experiment. Quarterly Journal of Economics 123(4): Drexler, Alejandro, Greg Fischer, and Antoinette Schoar (2010) Keeping It Simple: Financial Literacy and Rules of Thumb. CEPR Working Paper. London, UK: Centre for Economic Policy Research. September. Drugov, Mikhail and Rocco Macchiavello (2008) Learning and Microlending. CEPR Discussion Papers Fafchamps, Marcel, David McKenzie, Simon Quinn and Christopher Woodruff (2014) Microenterprise growth and the flypaper effect: Evidence from a Randomized Experiment in Ghana. Journal of Development Economics 106, pp Feigenberg, Benjamin, Erica Field and Rohini Pande (2010) Building Social Capital through Microfinance. NBER Working Paper Field, Erica and Rohini Pande (2008) Repayment Frequency and Default in Microfinance: Evidence From India." Journal of the European Economic Association 6: Field, Erica, Rohini Pande, John Papp and Natalia Rigol (2012) Does the Classic Microfinance Model Discourage Entrepreneurship Among the Poor? Experimental Evidence from India. Working Paper. Fischer, Greg (2010) Contract structure, risk sharing, and investment choice. London School of Economics, mimeo. Fischer, Greg and Maitreesh Ghatak (2010) Repayment Frequency in Microfinance Contracts with Present-Biased Borrowers. Working Paper, London School of Economics. Gangopadhyay, Shubhashis Maitreesh Ghatak and Robert Lensink (2005) Joint liability lending and the peer selection effect. Economic Journal 115: Ghatak, Maitreesh (2000) Screening by the company you keep: Joint liability lending and the peer selection effect. Economic Journal 110: Ghatak, Maitreesh and Timothy Guinnane (1999) The economics of lending with joint liability: A review of theory and practice. Journal of Development Economics 60: Ghatak, Subrata (1975) Rural Interest Rates in the Indian Economy. Journal of Development Studies 11(3): Giné, Xavier, Jessica Goldberg and Dean Yang (2012) Credit Market Consequences of Improved Personal Identification: Field Experimental Evidence from Malawi. American Economic Review 102(6):

16 Giné, Xavier Pamela Jakiela, Dean Karlan, and Jonathan Morduch (2010) Microfinance games. American Economic Journal: Applied Economics 2: *Giné, Xavier and Dean Karlan (2013) Group versus Individual Liability: Short and Long Term Evidence from Philippine Microcredit Lending Groups. Journal of Development Economics, forthcoming. Kaboski, Joseph and Robert Townsend (2012) The Impact of Credit on Village Economies. American Economic Journal: Applied Economics 4(2): **Kaboski, Joseph and Robert Townsend (2011) A structural evaluation of a large-scale quasiexperimental microfinance initiative. Econometrica 79(5): Karlan, Dean (2007) Social Connections and Group Banking. The Economic Journal 117: F52-F84. Karlan, Dean and Jonathan Zinman (2013) Long-Run Price Elasticities of Demand for Credit: Evidence from a Countrywide Field Experiment in Mexico. Yale University Economic Growth Center Discussion Paper No Karlan, Dean and Jonathan Zinman (2011) Microcredit in Theory and Practice: Using Randomized Credit Scoring for Impact Evaluation. Science 332(6035): *Karlan, Dean and Jonathan Zinman (2010) Expanding Credit Access: Using Randomized Supply Decisions to Estimate the Impacts. The Review of Financial Studies 23 (1): **Karlan, Dean and Jonathan Zinman (2009) Observing Unobservables: Identifying Information Asymmetries with a Consumer Credit Experiment. Econometrica 7(6): Karlan, Dean and Martin Valdivia (2011) Teaching Entrepreneurship: Impact of Business Training on Microfinance Clients and Institutions. Review of Economics and Statistics 93(2): Karlan, Dean, Jonathan Morduch and Sendhil Mullainathan (2010) Take-Up: Why Microfinance Take-Up Rates Are Low & Why It Matters. Financial Access Initiative Research Framing Note. Karlan, Dean, Adam Osman and Jonathan Zinman (2013) Follow the Money: Methods for Identifying Consumption and Investment Responses to a Liquidity Shock. Working Paper. Kranton, Rachel and Anand Swamy (1999) The hazards of piecemeal reform: British civil courts and the credit market in colonial India. Journal of Development Economics 58(1): Laffont, Jean-Jacques and Patrick Rey (2003) Moral Hazard, Collusion and Group Lending. IDEI Working Papers 122, Institut d'économie Industrielle (IDEI), Toulouse.

17 Morduch, Jonathan (1999) The Microfinance Promise. Journal of Economic Literature 37(4): Roodman, David and Morduch, Jonathan (2013) The Impact of Microcredit on the Poor in Bangladesh: Revisiting the Evidence. NYU Wagner Research Paper No Pitt, Mark (2011) Response to Roodman and Morduch s The Impact of Microcredit on the Poor in Bangladesh: Revisiting the Evidence. Pitt, Mark and Shahidur Khandker (1998) The Impact of Group-Based Credit Programs on Poor Households in Bangladesh: Does the Gender of Participants Matter? Journal of Political Economy 106 (5): Stiglitz, Joseph (1990) Peer monitoring and credit markets. World Bank Economic Review 4(3): Stiglitz, Joseph and Andrew Weiss (1981) Credit Rationing in Markets with Imperfect Information. American Economic Review 71(3): Tarozzi, Alessandro, Jaikishan Desai and Kristin Johnson (2013) On the Impact of Microcredit: Evidence from a Randomized Intervention in Rural Ethiopia. Working Paper. 9. Savings Abraham, Ronald, Felipe Kast, and Dina Pomeranz (2011) Insurance through savings accounts: Evidence from a randomized field experiment among low-income micro-entrepreneurs in Chile. Working Paper. Anagol, Santosh, Alvin Etang and Dean Karlan (2013) Continued Existence of Cows Disproves Central Tenets of Capitalism? NBER Working Paper Ananth, Bindu, Dean Karlan and Sendhil Mullainathan (2007) Microentrepreneurs and their Money: Three Anomalies. Working Paper. Anderson, Siwan and Jean-Marie Baland (2002) The Economics of ROSCAs and Intra- Household Resource Allocation. Quarterly Journal of Economics 117 (3): Aportela, Fernando (1999) Effects of financial access on savings by low-income people. Mimeo, Banco de Mexico.

18 Ashraf, Nava (2009) Spousal control and intra-household decision making: An experimental study in the Philippines American Economic Review 99(4): Ashraf, Nava, Dean Karlan and Wesley Yin (2010) Female Empowerment: Further Evidence From a Commitment Savings Product in the Philippines. World Development 38(3): *Ashraf, Nava, Dean Karlan and Wesley Yin (2006) Tying Odysseus to the Mast: Evidence from a Commitment Savings Product in the Philippines. Quarterly Journal of Economics 121(2): Banerjee, Abhijit. and Sendhil Mullainathan (2010) The shape of temptation: Implications for the economic lives of the poor. Working Paper. Basu, Karna (2011) Hyperbolic Discounting and the Sustainability of Rotational Savings Arrangements. American Economic Journal: Microeconomics 3(4): Beck, Thorsten, Asli Demirguc-Kunt, and Maria Soledad Martinez Peria (2008) Banking services for everyone? Barriers to bank access and use around the world. World Bank Economic Review 22(3): Besley, Timothy, Stephen Coate and Glenn Loury (1993) The Economics of Rotating Savings and Credit Associations. American Economic Review 83 (4): Bruhn, Miriam and Inessa Love (2009) The economic impact of banking the unbanked: evidence from Mexico." Policy Research Working Paper Series 4981, The World Bank. *Brune, Lasse, Xavier Giné, Jessica Goldberg and Dean Yang (2011) Commitments to Save: A Field Experiment in Rural Malawi. World Bank Policy Research Working Paper, No Washington, D.C.: World Bank. *Bryan, Gharad, Dean Karlan and Scott Nelson (2010) Commitment devices. Annual Review of Economics 2: *Burgess, Robin and Rohini Pande (2005) Do Rural Banks Matter? Evidence from the Indian Social Banking Experiment. American Economic Review 95 (3): Calomiris, Charles and Indira Rajaraman (1998) The Role of ROSCAs: Lumpy Durables or Event Insurance? Journal of Development Economics 56(1): Cole, Shawn and Thomas Sampson and Bilal Zia (2011) Prices or Knowledge? What Drives Demand for Financial Services in Emerging Markets? Journal of Finance 66(6): Demirguc-Kunt, Asli and Leora Klapper (2012) Measuring Financial Inclusion. The Global FINDEX database. Policy Research Working Paper 6025, The World Bank.

19 Duflo, Esther, Michael Kremer, and Jonathan Robinson (2011) "Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya." American Economic Review 101(6): **Dupas, Pascaline and Jon Robinson (2013a) Why Don t the Poor Save More? Evidence from Health Savings Experiments. American Economic Review 103(4), pp *Dupas, Pascaline and Jon Robinson (2013b) Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya. American Economic Journal: Applied Economics 5(1): Duryea, Suzanne and Ernesto Schargrodsky (2008) Financial services for the poor: Welfare, savings and consumption. Mimeo, Inter-American Development Bank. Fafchamps, Marcel, Christopher Udry and Katherine Czukas (1998) Drought and saving in West Africa: are livestock a buffer stock?" Journal of Development Economics 55(2): Gugerty, Mary Kay (2007) You Can t Save Alone: Commitment in Rotating Savings and Credit Associations in Kenya. Economic Development and Cultural Change 55 (2007): Jakiela, Pamela and Owen Ozier Does Africa Need a Rotten Kin Theorem? Experimental Evidence from Village Economies World Bank Policy Research Working Paper No Kaboski, Joseph and Robert Townsend (2005) Policies and Impact: An Analysis of Village- Level Microfinance Institutions." Journal of the European Economic Association 3(1): Karlan, Dean and Sendhil Mullainathan (2010) Debt Cycles. Working Paper. Karlan, Dean, Margaret McConnell, Sendhil Mullainathan and Jonathan Zinman (2011) Getting to the Top of Mind: How Reminders Increase Saving. Working Paper, Yale University. Kazianga, Harounan and Christopher Udry (2006) "Consumption smoothing? Livestock, insurance and drought in rural Burkina Faso." Journal of Development Economics 79(2): Kendall, Jake (2010) A penny saved: How do savings accounts help the poor? FAI Focus Note. New York, NY: Financial Access Initiative. Klonner, Stefan (2003) Rotating Savings and Credit Organizations When Participants Are Risk Averse. International Economic Review 44(3): *Paxson, Christina (1992) Using Weather Variability to Estimate the Response of Savings to Transitory Income in Thailand. American Economic Review 82(1): Prina, Silvia (2012) Do basic savings accounts help the poor to save? Evidence from a field experiment in Nepal. Working Paper, Case Western Reserve University.

20 Rosenzweig, Mark and Kenneth Wolpin (1993) Credit Market Constraints, Consumption Smoothing, and the Accumulation of Durable Production Assets in Low-Income Countries: Investments in Bullocks in India. Journal of Political Economy 101(2): Schaner, Simone (2013a) The cost of convenience? Transaction costs, bargaining power, and savings account use in Kenya. Mimeo, Darmouth College. Schaner, Simone (2013b) Do Opposites Detract? Intrahousehold Preference Heterogeneity and Inefficient Strategic Savings. Working Paper. Ubfal, Diego (2013) How General Are Time Preferences? Eliciting Good-Specific Discount Rates. Working Papers 473, IGIER, Bocconi University. Ubfal, Diego (2010) The impact of financial access on savings for beneficiaries of social programs in Mexico. Working Paper. 10. Insurance Bryan, Gharad, Shyamal Chowdhury and Ahmed Mushfiq Mobarak, Seasonal Migration and Risk Aversion. Mimeo, Yale University. Coate, Stephen and Martin Ravallion, Martin (1993) Reciprocity without commitment: Characterization and performance of informal insurance arrangements." Journal of Development Economics 40(1): **Cole, Shawn, Xavier Giné, Jeremy Tobacman, Petia Topalova, Robert Townsend and James Vickery (2013) Barriers to Household Risk Management: Evidence from India. American Economic Journal: Applied Economics 5(1): Dercon, Stefan (2002) Income Risk, Coping Strategies, and Safety Nets. World Bank Research Observer 17 (2): Fafchamps, Marcel and Susan Lund (2003) Risk Sharing Networks in Rural Philippines. Journal of Development Economics 71 (2): Giné, Xavier, Lev Menand, Robert Townsend and James Vickery (2010) Microinsurance : a case study of the Indian rainfall index insurance market. Policy Research Working Paper Series 5459, The World Bank. *Jayachandran, Seema (2006) Selling Labor Low: Wage Responses to Productivity Shocks in Developing Countries. Journal of Political Economy 114(3): *Karlan, Dean, Isaac Osei-Akoto, Robert Osei and Chris Udry (2013) Agricultural Decisions After Relaxing Credit and Risk Constraints. Working Paper.

21 *Mobarak, Ahmed Mushfiq and Mark Rosenzweig (2012) Selling Formal Insurance to the Informally Insured. Working Paper, Yale University. *Mobarak, Ahmed Mushfiq and Mark Rosenzweig (2013a) Effects of Informal Risk Sharing and Rainfall Insurance on Risk Choices, Working Paper, Yale University. Mobarak, Ahmed Mushfiq and Mark Rosenzweig (2013b). Labor Market Effects of Selling Rainfall Insurance to Cultivators and Landless Laborers, Working Paper, Yale University. Robinson, Jonathan and Ethan Yeh (2011) Transactional Sex as a Response to Risk in Western Kenya. American Economic Journal: Applied Economics 3 (1): *Rosenzweig, Mark and Hans Binswanger (1993) Wealth, Weather Risk and the Composition and Profitability of Agricultural Investments. The Economic Journal 103: *Rosenzweig, Mark and Oded Stark (1989) Consumption Smoothing, Migration, and Marriage: Evidence from Rural India. Journal of Political Economy 97(4): **Townsend, Robert (1994) Risk and Insurance in Village India. Econometrica 62 (3): **Udry, Christopher (1994) Risk and Insurance in a Rural Credit Market: An Empirical Investigation in Northern Nigeria. Econometrica 62 (3):