Narrow your search

Library

KU Leuven (2)


Resource type

book (2)


Language

English (2)


Year
From To Submit

2022 (1)

2021 (1)

Listing 1 - 2 of 2
Sort by

Book
How Important are Investment Indivisibilities for Development? Experimental Evidence from Uganda
Authors: --- --- --- ---
Year: 2022 Publisher: Cambridge, Mass. National Bureau of Economic Research

Loading...
Export citation

Choose an application

Bookmark

Abstract

Theoretically, indivisible investments together with financial frictions can lower development, generate poverty traps, and lead agents to become risk-loving. Using experimental cash grants involving a choice between a safer, low payoff and a riskier, large payoff lottery, we find that 27 percent choose the riskier, larger lottery. Small grant winners invest in livestock and business inventory, while large grant winners invest in land, which exhibits high capital gains. Our quantitative model shows that the aggregate effects of financial deepening are sizable if the indivisible investment can be accumulated (e.g., capital) but not if it is in fixed supply (e.g., land).

Keywords


Book
Big Fish in Thin Markets : Competing with the Middlemen to Increase Market Access in the Amazon
Authors: --- --- --- ---
Year: 2021 Publisher: Cambridge, Mass. National Bureau of Economic Research

Loading...
Export citation

Choose an application

Bookmark

Abstract

Middlemen are ubiquitous in supply chains. In developing countries they help bring products from remote communities to end markets but may exert strong market power. We study a cooperative intervention which organizes together poor fishing communities in the Amazon -- one of the poorest and most remote regions of the world -- to purchase large boats in order to partially bypass middlemen and deliver their fish directly to market. We find that the intervention increases income by 27%, largely through an increase in price received, and also increases consumption. Moreover, the intervention is highly cost effective with the projected stream of income gains easily covering the cost of the investment. Finally, we formalize a model in which the market power of middlemen itself can create a poverty trap, which can be eliminated with cooperative investment.

Keywords

Listing 1 - 2 of 2
Sort by