The authors offer an analysis of one financial institution, a government-operated bank in Thailand, the Bank for Agriculture and Agricultural Cooperatives (BAAC). This article ties the actual BAAC operating systems to the theory of an optimal allocation of risk bearing. The lessons they draw in...

We propose a coherent unified approach to the study of the linkages among economic growth, financial structure, and inequality, bringing together disparate theoretical and empirical literature. That is, we show how to conduct model-based quantitative research on transitional paths. With...

"This paper focuses on avoidable moral hazard and offers one explanation for limited insurance markets, for closely held firms, and for seemingly simple as opposed to contingent forms of debt. Agents have random endowments of a consumption good which are such that there are gains to trading...