Gwendolyn Alexander Tedeschi

714 Saint Nicholas Avenue #1

New York, NY 10031

(917) 797 – 3857





Ph.D.           Economics, University of Maryland at College Park, August 2001

                    Dissertation:  Essays on the Dynamics of Microfinance


M.A.           Economics, University of Maryland at College Park, December 1999

                    Fields:  Development Economics, International Trade, Industrial Organization

B.A.            Economics and International Studies, Illinois Wesleyan University, May 1996

                    Graduated summa cum laude with Research Honors


Professional Experience


Assistant Professor of Economics, Fordham University, Bronx, NY 10458.  August 2001 – Present.  Graduate preparations:  Microeconomic Development Issues, Game Theory, Math for Economists I, Math for Economists II.  Undergraduate preparations in Basic Microeconomics and Economics of Emerging Nations.

Consultant, Stratecon, January 2002.  Assist team in developing a constrained linear programming model to estimate the minimal and optimal number of participants in government purchase card program.

Consultant,  The World Bank, June 1999-July 2000. Team project on Credit Information Systems in developing countries.  Wrote surveys for credit bureaus, central banks and private banks.  Cleaned and analyzed data and maintained dataset.  Helped organize international conference.

Instructor, University of Maryland, January 1998 – December 2000.  Undergraduate course in International Economics (Trade and Finance).

Teaching Assistant, University of Maryland, January 2001-May 2001 (Principles of Microeconomics), and August 1997-December 1997 (Principles of Macroeconomics).

Intern, US Agency for International Development, August 1998-May 1999.  Read for content and proofread department publications.  Assisted team in writing survey for microfinance impact assessments.

Intern, Foreign Service Institute, US Department of State, May 1996-August 1996.  Assist in course on spreadsheet skills.  Develop case study on CFA Franc Zone. 




“Here Today, Gone Tomorrow:  Can Dynamic Incentives Make Microfinance More Flexible?”  Journal of Development Economics  80 (2006)  84 – 105.  

This paper presents a model of microfinance lending to individuals that uses dynamic incentives, in the form of access to additional loans, to discourage borrowers from strategic default, or the unwillingness to repay a loan once a positive outcome is realized. We propose an improvement on contracts currently used by microfinance institutions (MFIs) by endogenizing the default penalty, while constraining the MFI to maintain sustainable lending operations.   Furthermore, accounting for the risks that the poor face by including a negative economic shock, we show that under certain circumstances, the punishment for default need not be a lifetime without loans.


 “Overcoming Selection Bias in Microcredit Impact Assessments:  A case study from Peru.” Journal of Development Studies.  Anticipated publication in Vol. 44, No.4 (April 2008).

There are several potential sources of bias in microfinance impact assessments.  This paper uses a panel data set from a Peruvian MFI to test for impact of credit on microenterprise profits, while controlling for these biases.  We find that those who will eventually become borrowers have significantly higher incomes than those who will not become borrowers, implying that selection into the lending program is a substantial problem.  After controlling for this selection, we find that an average microentrepreneur who borrows earns significantly higher enterprise profits than one who does not borrow, and that naïve models, which do not control for selection, overestimate this impact.  Fixed-effect estimates give roughly the same results as the quasi-experimental cross section analysis. 


“Cross Sectional Impact:  Bias from Dropouts” with Dean Karlan, Yale University.  Forthcoming in Perspectives on Technology and Development.

Several microfinance organizations have begun using a management tool, developed by Assessing the Impact of Microenterprise Services (AIMS) at the United States Agency for International Development (USAID), to assess impact. This tool recommends comparing veteran members to new members of a microcredit program, and attributes any difference to the impact of the program. The tool introduces a potential source of bias into estimates of impact by not instructing organizations to include program dropouts in their calculations. This paper uses data from a longitudinal study in Peru of Mibanco borrowers and non-borrowers to quantify some, but not all, of the biases in the cross-sectional approach. In these data, not including dropouts overestimates the impact of the credit program. Furthermore, we find that the sample composition shifted over the two years, introducing further bias into a cross-sectional impact assessment.


“Drug Markets: A Classroom Experiment”  American Economist, LI (1): 75 – 83.

Experiments are becoming increasingly popular in economics principles classes as a way to gain student interest in a rather abstract subject.   This experiment examines the market for illegal drugs, such as marijuana, and the effects of loosening government intervention on it.  While the media tends to focus on the ‘normative’ aspects of drug legislation, students explore the ‘positive’ effects that such legislation would produce.  This paper contains detailed instructions on the experiment, including a discussion of decriminalization and legalization, and ends with empirical research on the drug market, a discussion of sin taxes, and the economic costs associated with drug use.

 “Beyond the Subsidy:  Coyotes, Credit and Fair Trade Coffee.”  with Julie Carlson DeCourcy, Federal Trade Commission.

Instead of paying farmers the market price for the good that they produce, fairtrade imposes a price floor on products sold under the Fairtrade label.  The standard economic analysis of price floors concludes that fairtrade is nothing more than an inefficient subsidy.  However, the standard analysis of price floors relies on perfectly competitive markets – which are unlikely for the small coffee producers that fairtrade targets.  By severing the interlinkage between credit and coffee purchase by local coyotes (trader-lenders), Fairtrade contracts may improve the outcome of the imperfectly competitive market.  In this paper, three mathematical models of coffee production are examined.  We consider coffee production as if it were perfectly competitive, as it exists in the absence of fairtrade, and in the presence of fairtrade.  In comparing the outcomes, fairtrade may not lead to the quantity distortions expected from a subsidy, particularly when world coffee prices or the demand for fairtrade coffee is low.  Furthermore, fairtrade always improves the farmer’s profit relative to the coyote equilibrium, the very outcome that fairtrade aims to achieve.


“Essays on the Dynamics of Microfinance”  Ph.D. Dissertation, University of Maryland, College Park, June 2001.



Southern Economic Association Annual Meeting, Charleston, November 2006

Eastern Economic Association Annual Meeting, Philadelphia, February 2006

American Economic Association Annual Meeting, Philadelphia, January 2005

Southern Economic Association Annual Meeting, New Orleans, November 2004

SEDESOL (Ministry of Social Development), Mexico City, October 2004

Universidad Iberoamericana, Department of Economics, Mexico City, October 2004

Northeast Universities Development Conference (NEUDC), October 2000, 2001.

Workshop on Theoretical and Empirical Research in Microfinance (Heidelberg, Germany), October 2001.

Ohio State University, Rural Finance Program Brownbag Seminar, February 2001.

Fordham University, January 2001.

Trinity University (TX), January 2001.

University of Maryland, College Park, November 2000.

LACEA/WB/IDB Network on Inequality and Poverty meetings, October 2000.



Editorial Advisory Board, Lahore Journal of Economics, 2005 - present

American Economic Association Member, 2000 – Present

Council on the Status of Women in the Economics Profession (CSWEP) Member, 2004 – Present

Discussant, GSAS/UNDP Seminar Series on Gender and Povery, January 2007

Referee, Journal of Development Studies, 2006

Referee, American Economist, 2005, 2006

Discussant, Eastern Economic Association Annual Meeting, Philadelphia, February 2006

Discussant, American Economic Association Annual Meeting, Philadelphia, January 2005

Referee, Journal of the European Economic Association, 2004

Discussant, Southern Economic Association Annual Meeting, New Orleans, November 2004

Discussant, Northeast Universities Development Conference (NEUDC) October 2001, 2002, 2003

Discussant, Workshop on Theoretical and Empirical Research in Microfinance (Germany), October 2001



Chair, Development Search Sub-Committee, 2004 – 2005      

Faculty Mentor to Rachael Vineyard, Matteo Ricci Fellowship, Summer 2004

Mentor, Honors Thesis in International Political Economy:  Giancarlo Iosue, 2004

Mentor, Honors Thesis in Economics:  Sarah Donnelly (2005), Melanie Trinidad (2004)

Reader, Honors Thesis in Economics:  Elena Agueenko (2004), Stephen Casil (2003)

Reader, Ph.D. Dissertation:  Dina DiCenso (Ph.D., 2005), Noel DeGuzman (Ph.D., 2005), Dexter Gittens (Ph.D., 2006)

Economics Major Advisor, 2002 – present

Sophomore Advisor, 2003 – 2005

Freshman Advisor, 2002 – 2005

Presentation in Tierney Hall, “AIDS in Africa,” 2002

Participant, Faculty and Staff Spring Reflection Series, 2002


Honors AND Awards

Faculty Research Grant, Fall 2006

Faculty Fellowship, Spring 2006

CSWEP Regional Mentoring Program, Washington, D.C., 2004

Ames Fund Grant, Fordham University, 2002

Jacob K. Goldhaber Travel Grant, University of Maryland, 2000

Nominated for Brookings Fellowship in Economics, 2000

Robert S. Eckley President's Club Award in Social Sciences, Illinois Wesleyan University, 1996

Outstanding Senior, Illinois Wesleyan University, 1996

State Farm Exceptional Student Fellowship, 1995 & 1996