We study an economy where agents are heterogeneous in terms of observablewealth and unobservable talent. Adverse selection forces creditors to ask forcollateral. We study the two-way interaction between rationing in the creditmarket and the wages offered in the labor market. Both pooling and...

Buyer-Seller networks are pervasive in developing economies yet remain relatively under-studied. Using primary data on contracts between the largest tractor assembler in Pakistanand its suppliers we …find large variations in prices and quantities across suppliers of the sameproduct....

The well-known inverse relationship between farm size and productivity is usually explained in terms ofdiminishing returns with respect to land and other inputs coupled with various types of market frictions thatprevent the efficient allocation of land across farms. We show that even in the...