Source Themes

Dams, Snails and Poverty Traps

Irrigation schemes are one of the most important policy responses designed to reduce poverty, particularly in sub-Saharan Africa. Concomitantly, they facilitate the propagation of schistosomiasis, a water-based debilitating disease that is endemic in …

The Economic Impact of Schistosomiasis

We study the economic impact of schistosomiasis, a parasitic disease with a complex transmission cycle which is endemic in many developing countries, by means of its effect on agricultural production. We create a novel dataset that combines high-resolution disease prevalence maps with detailed agricultural and household surveys. We find a large, negative and nonlinear causal effect of the disease on yields. Our empirical results provide further proof of the negative feedback between disease dynamics and water resources development, and are consistent with schistosomiasis constituting a poverty-reinforcing productivity shock.

Can one hear the shape of a target zone?

Can one hear the shape of a target zone? Yes, if the fundamental process isn't too destabilized by the underlying risk.

Increasing Risk: Dynamic Mean-Preserving Spreads

We extend the celebrated Rothschild and Stiglitz (1970) definition of Mean-Preserving Spreads to a dynamic framework. We adapt the original integral conditions to transition probability densities, and give sufficient conditions for their …

Firm Decisions under Jump-Diffusive Dynamics

A model of firm investment under uncertainty and partial irreversibility in which uncertainty is represented by a jump diffusion.