Savings rate in Pakistan is one of the lowest in the regional countries. As a result, investment to GDP ratio has been dismally low as well. Low investment results in low capital formation and hence lower long term growth and hence low levels of development. The long term growth literature from...

In this paper we analyze the role of peer solidarity in fostering productive investments inthe context of microfinance. When there is asymmetric information between lenders and borrowers andloans are not collateralized, borrowers may divert loans towards current consumption rather than...

This paper analyzes the main uncertainty of college saving - the child's ability - in the context of the saving with learning model. The first section develops a dynamic model combining asset accumulation and learning to explain the parents' forward-looking saving behavior when they are...