A general equilibrium model featuring multiple realistic sources of financial frictions is developed to study how different constraints interact in equilibrium.
Firms use relational contracts to support repeated trade. Do these informal agreements evolve in response to market conditions? In a market for ice, firms reestablish relationships on new terms when a prior agreement breaks down.
A common concern with efforts to directly help some small businesses to grow is that their growth comes at the expense of their unassisted competitors.
African agricultural markets are characterized by low farmer revenues and high consumer food prices. Many have worried that this wedge is partially driven by imperfect competition among intermediaries.
Alfonsi, Bandiera, Bassi, Burgess, Rasul, Sulaiman and Vitali (2020) design a labor market experiment to compare demand- and supply-side policies to tackle youth unemployment, a key issue in low-income countries.
In all modern bureaucracies, politicians retain some discretion in public employment decisions, which may lead to frictions in the selection process if political connections substitute for individual competence.
