Few micro…nance-funded businesses grow beyond subsistence entrepreneur-ship. This paper considers one possible explanation: that the structure ofexisting micro…nance contracts may discourage risky but high-expected returninvestments. To explore this possibility, I develop a theory that uni…es...

Individuals and business owners engage in an increasingly complex array of financialdecisions that are critical for their success and well-being. Yet a growing literature documentsthat in both developed and developing countries, a large fraction of the population is unpreparedto make these...

This paper investigates the relationship between inflation uncertainty and the investmentdecisions of small, micro…finance-funded …firms in the Dominican Republic. An extensive literature documents the array of opposing factors linking inflation uncertainty and investment;ultimately this...

Microfinance continues to play an ever increasing role in approaches topoverty alleviation around the world. Yet despite the attention paid tomicrofinance, the design of credit contracts for small uncollateralized loansremains a bit of a mystery. From its inception, microfinance generated agreat...