Journal Article A Simple Model of Herd Behavior Get access Abhijit V. Banerjee Princeton University Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Economics, Volume 107, Issue 3, August 1992, Pages 797–817, https://doi.org/10.2307/2118364 Published: 01 1992

This paper models economic development as a process of institutional transformation by focusing on the interplay between agents' occupational decisions and distribution wealth. Because capital market imperfections, poor agents choose working for wage over self-employment, wealthy become entrepreneurs who monitor workers. Only with sufficient inequality, however, will there be employment contracts; otherwise, is either subsistence or self-employment. Thus, in static equilibrium, structure...

The 1990 World Development Report from the Bank defined “extremely poor” people of world as those who are currently living on no more than $1 per day person. But how actually does one live less day? This essay is about economic lives extremely poor: choices they face, constraints grapple with, and challenges meet. A number recent data sets a body new research allow us to start building an image way poor their lives. Our discussion builds household surveys conducted in 13 countries: Cote...

This paper reports results from the randomized evaluation of a group-lending microcredit program in Hyderabad, India. A lender worked 52 randomly selected neighborhoods, leading to an 8.4 percentage point increase takeup microcredit. Small business investment and profits preexisting businesses increased, but consumption did not significantly increase. Durable goods expenditure while “temptation goods” declined. We found no significant changes health, education, or women's empowerment. Two...

This title comes from the award-winning founders of unique and remarkable Abdul Latfi Jameel Poverty Action Laboratory at MIT, a transformative reappraisal world extreme poor, their lives, desires frustrations. Billions government dollars, thousands charitable organizations NGOs are dedicated to helping world's poor. But much work they do is based on assumptions that untested generalizations best, flat out harmful misperceptions worst. Banerjee Duflo have pioneered use randomized control...

We analyze the colonial land revenue institutions set up by British in India, and show that differences historical property rights lead to sustained economic outcomes. Areas which proprietary were historically given landlords have significantly lower agricultural investments productivity post-independence period than areas these cultivators. These also health education. are not driven omitted variables or endogeneity problems; they probably arise because very different policy choices.

To study the impact of choice injection points in diffusion a new product society, we developed model word-of-mouth and then applied it to data on social networks participation newly available microfinance loan program 43 Indian villages. Our allows us distinguish information passing among neighbors from direct influence neighbors' decisions, as well by participants versus nonparticipants. The estimates suggest that are seven times likely pass compared informed nonparticipants, but passed...

World Development Report 2006 analyzes the relationship between equity and development. The report documents persistence of inequality traps by highlighting interaction different forms inequality. It presents evidence that opportunity arises is wasteful inimical to sustainable development poverty reduction. also derives policy implications center on broad concept leveling playing field-both politically economically in domestic global arenas. recognizes intrinsic value but aims primarily...

Attacking the problem of extreme poverty A persistent concern about wellintentioned efforts to improve living standards for 1.2 billion people who survive (if it can be called that) on less than $1.25 US per day is figuring out what works. second whether works in one setting made work another. Banerjee et al. describe encouraging results from a set pilot projects Ethiopia, Ghana, Honduras, India, Pakistan, and Peru encompassing 11,000 households. Each project provided short-term aid...

Causal evidence on microcredit impacts informs theory, practice, and debates about its effectiveness as a development tool. The six randomized evaluations in this volume use variety of sampling, data collection, experimental design, econometric strategies to identify causal effects expanded access borrowers and/or communities. These methods are deployed across an impressive range locations—six countries four continents, urban rural areas—borrower characteristics, loan lender characteristics....

Journal Article Do Firms Want to Borrow More? Testing Credit Constraints Using a Directed Lending Program Get access Abhijit V. Banerjee, Banerjee Department of Economics, MIT Search for other works by this author on: Oxford Academic Google Scholar Esther Duflo The Review Economic Studies, Volume 81, Issue 2, April 2014, Pages 572–607, https://doi.org/10.1093/restud/rdt046 Published: 05 February 2014 history Received: 01 May 2008 Accepted: July 2013

We expect a lot from the middle classes. At least three distinct arguments about special economic role of class are traditionally made. In one, new entrepreneurs armed with capacity and tolerance for delayed gratification emerge create employment productivity growth rest society. second, perhaps more conventional view, is primarily source vital inputs entrepreneurial class: it their “middle values”—their emphasis on accumulation human capital savings—that makes them central to process...

This paper reports on the first randomized evaluation of impact introducing standard microcredit group-based lending product in a new market. In 2005, half 104 slums Hyderabad, India were randomly selected for opening branch particular microfinance institution (Spandana) while remainder not, although other MFIs free to enter those slums. Fifteen 18 months after Spandana began treated areas, households 8.8 percentage points more likely have loan. They no start any business, they several at...

This paper tries to explain why government bureaucracies are often associated with red tape, corruption, and lack of incentives. The identifies two specific ingredients that together can provide an explanation: the fact governments act precisely in situations where markets fail presence agency problems within government. We show these exacerbated at low levels development dealing poor people. also argue we need posit existence a welfare-oriented constituency order tape corruption.

Journal Article Thy Neighbor's Keeper: The Design of a Credit Cooperative with Theory and Test Get access Abhijit V. Banerjee, Banerjee Department Economics, Massachusetts Institute Technology Search for other works by this author on: Oxford Academic Google Scholar Timothy Besley, Besley Woodrow Wilson School, Princeton University W. Guinnane Yale Quarterly Volume 109, Issue 2, May 1994, Pages 491–515, https://doi.org/10.2307/2118471 Published: 01 1994

The paper analyzes the effect of agricultural tenancy laws offering security tenure to tenants and regulating share output that is paid as rent on farm productivity. Theoretically, net impact reform shown be a combination two effects: bargaining power effect. Analysis evidence how contracts productivity changed after program was implemented in Indian state West Bengal late 1970s suggests had positive there.

Randomized experiments have become a popular tool in development economics research and been the subject of number criticisms. This paper reviews recent literature discusses strengths limitations this approach theory practice. We argue that main virtue randomized is that, owing to close collaboration between researchers implementers, they allow estimation parameters would not otherwise be possible evaluate. discuss concerns raised regarding generally conclude although real, are often...

This paper examines evidence of the role that reputation plays in determining contractual outcomes. We conduct an empirical analysis Indian customized software industry, using a data set we collected containing detailed information on 230 projects carried out by 125 firms. propose model ofthe industry where determines The supports view matters. Ex ante contracts, as well outcome after ex post renegotiation, vary with firms' characteristics plausibly associated reputation. holds controlling...

This paper reports an experiment in 640 Indonesian villages on three approaches to target the poor: proxy-means tests (PMT), where assets are used predict consumption; community targeting, villagers rank everyone from richest poorest; and a hybrid. Defining poverty based PPP$2 per-capita consumption, targeting hybrid perform somewhat worse identifying poor than PMT, though not by enough significantly affect outcomes for typical program. Elite capture does explain these results. Instead,...