When Enron, a Texas-based energy trader and supplier, filed for bankruptcy in December 2001, its stock was trading at $0.26 per share. The prior year its share price peaked at $90.75. This stunning fall was not the result of economic shocks or events out of Enron’s control.

When COVID-19 swept the world in early 2020 and closed or restricted business activity, researchers and policymakers scrambled to determine the virus’s economic impact on everything from employment, income, and childcare to business closures, commercial property, and work-from-home strategies. Policymakers needed answers fast to plan the most efficacious responses and direct limited resources to benefit those who needed it the most.

Imagine that you are a wholesale provider of textiles to retailers who sell their wares in a large bazaar in one of many communities across India. As a wholesaler, you receive your inventory from a large supplier in say, Mumbai or Delhi. It’s a challenging business; margins are thin, and your livelihood depends on your retailers’ success. At the same time, retailers often do not have enough money to purchase your wares and, therefore, you need to provide credit. To whom do you lend? In an informal market that is absent balance sheets and sales data, who do you trust? Where do you get your information?

On March 4, Michael Kremer presented his recent research during the South Asia Economic Policy...