Informal insurance is an important risk-coping mechanism in developing countries, yet this
risk sharing is incomplete. Models of limited commitment, moral hazard, and hidden income …

We quantitatively evaluate a model of insurance with limited commitment where the
requirement that contracts be immune to deviations by subcoalitions makes group size …

This paper uses a dataset from Tanzania with information on consumption, income, and
income shocks within and across family networks. Crucially and uniquely, it also contains …

This paper investigates extensions of the method of endogenous gridpoints (ENDGM)
introduced by Carroll (Econ Lett 91 (3): 312–320, 2006) to higher dimensions with more than …

We introduce a flexible and scalable method for solving discrete-time dynamic incentive
problems with heterogeneous agents and persistent types. Our framework entails a generic …

To what extent is public debt private liquidity? Much policy advice given in the aftermath of
the financial crisis rests on the assumption that increasing public debt relaxes borrowing …

In 2010, Google withdrew from mainland China unexpectedly, which is an important issue
that significantly changed the information acquisition environment in China. After that, Baidu …

How do business cycle fluctuations affect the ability of households to smooth consumption
against idiosyncratic shocks? To answer this question, we first document that, in US\micro …

This paper investigates whether assuming that households possess advance information on
their income shocks helps to overcome the difficulty of standard models to understand …

This paper studies the implications of optimal insurance provision for long-run welfare and
inequality in economies with persistent private information. We consider a model in which a …