In an environment in which both workers and firms undertake match specific investments, the presence of market competition for matches may solve the hold-up problems generated by the absence of complete contingent contracts. In particular, this paper shows that in a world in which workers and...

This paper analyses the experience with rule-based monetary policy in African countries which have participated in monetary unions (CFA Franc Zone, Eastern African Currency Board and Rand Monetary Area). We show that African countries have generally lacked the domestic political institutions...

This paper studies liberalised grain markets in Madagascar and examines how property rights are protected and contracts are enforced among agricultural traders. We find that the incidence of theft and breach of contract is low, and that the losses resulting from such instances are small. This,...

In Zimbabwe, people in resettled villages trust each other less than people in non-resettled villages. This does not appear to be due to differences in socially transmitted rules of behaviour. Further, there are good reasons to believe that it is not due to the self-selection of a particular...

Analysis of rural households and environmental resources is beset by inadequate data, especially in Africa. Using purpose-collected panel data from Zimbabwe, we demonstrate seven empirical regularities in the rural poverty-environment relationship. Most importantly, environmental resources make...

This is an analysis of strategic voting under the plurality rule. Existing theories predict strict bipartism, where rational voters support only two candidates: a strict interpretation of Duvergers Law. This conclusion is rejected. The new theory employs a simple model of a three-candidate...

This paper takes a new look at the classic concession game. It argues that exit from an asymmetric war of attrition is likely to be instant. Selecting a unique equilibrium using a craziness perturbation device, it finds a notion of stochastic strength determines the outcome, with a...

This paper analyses the effects of risk on the holding of inventories and liquid assets by manufacturing firms. Using a panel data set for Zimbabwe which includes firm-specific measures of contractual risk, we show that contractual risk has a major effect on the holding of stocks of inputs and,...

This paper examines income dynamics for a panel of households resettled on former white-owned farms in the aftermath of Zimbabwe`s independence. There are four core findings: (i) there has been an impressive accumulation of assets by these households; (ii) while this accumulation has played a...