Category Archive Research Articles

The real cost of credit constraints: Evidence from micro-finance

In December 2010, the Indian state of Andhra Pradesh passed a law that severely restricted the operations of micro-finance institutions and brought the micro-finance industry to an abrupt halt. We measure the impact of micro-credit withdrawal in this unique natural experiment and find that average household expenditure dropped by 19 percent relative to a control group after the ban. The largest decrease was observed in expenditure on food. There is some evidence of higher volatility in consumption after the ban. All households were affected and not just the borrower households, which may suggest general equilibrium effects.
http://www.igidr.ac.in/pdf/publication/WP-2013-013.pdf

Sustainability and innovation in staple crop production in the US Midwest

Abstract

An agroecosystem is constrained by environmental possibility and social choices, mainly in the form of government policies. To be sustainable, an agroecosystem requires production systems that are resilient to natural stressors such as disease, pests, drought, wind and salinity, and to human constructed stressors such as economic cycles and trade barriers. The world is becoming increasingly reliant on concentrated exporting agroecosystems for staple crops, and vulnerable to national and local decisions that affect resilience of these production systems. We chronicle the history of the United States staple crop agroecosystem of the Midwest region to determine whether sustainability is part of its design, or could be a likely outcome of existing policies particularly on innovation and intellectual property. Relative to other food secure and exporting countries (e.g. Western Europe), the US agroecosystem is not exceptional in yields or conservative on environmental impact. This has not been a trade-off for sustainability, as annual fluctuations in maize yield alone dwarf the loss of caloric energy from extreme historic blights. We suggest strategies for innovation that are responsive to more stakeholders and build resilience into industrialized staple crop production.