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Poor Economics

Abhijit Banerjee & Esther Duflo · 2011

Nobel laureates use randomized controlled trials to study economic behavior in poverty. Their findings challenge conventional wisdom about rationality, development, and decision-making. The critical insight for investors: economic behavior is not universal. Your framework is local, not global. The poor aren't irrational — they're making sophisticated decisions under constraints most investors have never experienced.

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