The author develops a model of cooperation in small irrigation systems. He points out conditions under which an equalizing redistribution of wealth increases the level of equilibrium cooperation, but also shows that some redistributions that raise inequality can also foster cooperation. The...

I develop a model to assess distributive rules observed in field data on 48 Mexican farmer-managed irrigation systems. Households decide whether to contribute maintenance effort, the aggregate amount of which affects the level of output. Distributive rules with congruence between the sharing of...

• Adjustment does not necessarily increase poverty • Adjusting before a crisis reduces social costs • Refusal to adjust and the suspension of imports leads to self-centred underdevelopment, which is socially much more costly • The choice of macroeconomic stabilisation measures is...