Traditionally focused on external constraints, economists are increasingly recognizing the importance of internal constraints that reflect perceptions as much as reality. Perceived self-efficacy (PSE)—individuals’ perception of their domain-specific capabilities—fundamentally shapes these...

The effective design and implementation of interventions that reduce vulnerability and poverty require a solid understanding of underlying poverty dynamics and associated behavioral responses. Stochastic and dynamic benefit streams can make it difficult for the poor to learn the value of such...