Chapter 5 Poverty Traps

Handbook of Economic Growth

Volumn 1, Issue SUPPL. PART A, 2005, Pages 295-384

  Azariadis, Costas ^a   Stachurski, John ^b  

^a UNIVERSITY OF CALIFORNIA   (United States)

^b UNIVERSITY OF MELBOURNE   (Australia)

Author keywords

history dependence; institutions; market failure; persistent poverty; technology; world income distribution

Indexed keywords

EID: 66049151232     PISSN: 15740684     EISSN: None     Source Type: Book Series    
DOI: 10.1016/S1574-0684(05)01005-1     Document Type: Review

References (132)

1. Acemoglu D. Training and innovation in an imperfect labor market. Review of Economic Studies 64 3 (1997) 445-464
2. Acemoglu D., Johnson S., and Robinson J. Institutions as the fundamental cause of long-run growth. In: Aghion P., and Durlauf S.N. (Eds). Handbook of Economic Growth, vol. 1A (2005), Elsevier, Amsterdam Chapter 6 in this volume
3. Acemoglu D., and Zilibotti F. Was Prometheus unbound by chance? Risk, diversification and growth. Journal of Political Economy 105 4 (1997) 709-751
4. Adsera A., and Ray D. History and coordination failure. Journal of Economic Growth 3 (1997) 267-276
5. Aghion P., and Bolton P. A theory of trickle-down growth and development. Review of Economic Studies 64 (1997) 151-172
6. Amir R., Mirman L.J., and Perkins W.R. One-sector nonclassical optimal growth: optimality conditions and comparative dynamics. International Economic Review 32 3 (1991) 625-644
7. Arthur W.B. Increasing Returns and Path Dependence in the Economy (1994), University of Michigan Press, Ann Arbor
8. Azariadis C. The economics of poverty traps. Journal of Economic Growth 1 (1996) 449-486
9. Azariadis C. The theory of poverty traps: what have we learned?. In: Bowles S., Durlauf S., and Hoff K. (Eds). Poverty Traps (2005), Princeton University Press, Princeton
10. Azariadis C., and Drazen A. Threshold externalities in economic development. Quarterly Journal of Economics 105 (1990) 501-526
11. Azariadis, C., Stachurski, J. (2004). "A forward projection of the cross-country income distribution". Mimeo, Université Catholique de Louvain
12. Baker, E. (2004). "Institutional barriers to technology adoption in rural Africa". Mimeo, Stanford University
13. Bandiera, O., Rasul, I. (2003). "Complementarities, social networks and technology adoption in northern Mozambique". Mimeo
14. Banerjee, A. (2003). "The two poverties". Mimeo, Massachusetts Institute of Technology
15. Banerjee A., and Newman A. Occupational choice and the process of development. Journal of Political Economy 101 (1993) 274-298
16. Bardhan P. Corruption and development: a review of the issues. Journal of Economic Literature 35 (1997) 1320-1346
17. Barrett C.B., Bezuneh M., and Aboud A. Income diversification, poverty traps and policy shocks in Côte d'Ivoire and Kenya. Food Policy 26 4 (2001) 367-384
18. Barrett, C.B., Swallow, B.M. (2003). "Fractal poverty traps". Strategies and Analysis for Growth and Access Working Paper, Cornell and Clark Atlanta Universities
19. Basu K., and Van P.H. The economics of child labor. American Economic Review 88 3 (1998) 412-427
20. Beath J., Katsoulacos Y., and Ulph D. Game-theoretic approaches to the modeling of technological change. In: Stoneman P. (Ed). Handbook of the Economics of Innovation and Technological Change (1995), Blackwell
21. Bianchi M. Testing for convergence: evidence from nonparametric multimodality tests. Journal of Applied Econometrics 12 (1997) 393-409
22. Bloom D.E., Canning D., and Sevilla J. Geography and poverty traps. Journal of Economic Growth 8 (2003) 355-378
23. In: Bowles S., Durlauf S.N., and Hoff K. (Eds). Poverty Traps (2005), Princeton University Press, Princeton
24. Brock W.A., and Mirman L. Optimal economic growth and uncertainty: the discounted case. Journal of Economic Theory 4 (1972) 479-513
25. Caballero R., and Lyons R.K. The case for external economies. In: Cukierman A., et al. (Ed). Political Economy, Growth and Business Cycles (2002), MIT Press, Cambridge, MA
26. Cass D. Optimum growth in an aggregative model of capital accumulation. Review of Economic Studies 32 (1965) 233-240
27. Checchi D., and García-Peñalosa C. Risk and the distribution of human capital. Economics Letters 82 1 (2004) 53-61
28. Chen S., and Ravallion M. How did the world's poor fare in the 1990s?. Review of Income and Wealth 47 3 (2001) 238-300
29. Conley, T.G., Udry, C.R. (2003). "Learning about a new technology: pinapple in Ghana." Mimeo
30. Da Rin M., and Hellmann T. Banks as catalysts for industrialization. Journal of Financial Intermediation 11 (2002) 366-397
31. Dasgupta, P. (2003). "World poverty: causes and pathways". Mimeo, University of Cambridge
32. Dasgupta P., and Ray D. Inequality as a determinant of malnutrition and unemployment. The Economic Journal 96 (1986) 1011-1034
33. David P.A. Why are institutions the 'carriers of history'?: Path dependence and the evolution of conventions, organizations and institutions. Structural Change and Economic Dynamics 5 2 (1994) 205-220
34. Dechert W.D., and Nishimura K. A complete characterization of optimal growth paths in an aggregated model with non-concave production function. Journal of Economic Theory 31 (1983) 332-354
35. Den Haan W.J. Convergence of stochastic growth models: the importance of understanding why income levels differ. Journal of Monetary Economics 35 (1995) 65-82
36. Dercon S. Wealth, risk and activity choice: cattle in Western Tanzania. Journal of Development Economics 55 (1998) 1-42
37. Dercon, S. (2003). "Risk and poverty: a selective review of the issues". Mimeo, Oxford University
38. Desdoigts A. Patters of economic development and the formation of clubs. Journal of Economic Growth 4 3 (1999) 305-330
39. De Soto H. The Other Path: The Invisible Revolution in the Third World (1989), Harper and Row, New York
40. Dimaria C.H., and Le Van C. Optimal growth, debt, corruption and R&D. Macroeconomic Dynamics 6 (2002) 597-613
41. Durlauf S.N. Nonergodic economic growth. Review of Economic Studies 60 (1993) 349-366
42. Durlauf S.N. Neighborhood effects. In: Henderson J.V., and Thisse J.F. (Eds). Handbook of Regional and Urban Economics vol. 4 (2004), Elsevier, Amsterdam
43. Durlauf S.N., and Johnson P.A. Multiple regimes and cross-country growth behavior. Journal of Applied Econometrics 10 4 (1995) 365-384
44. Easterly W. The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics (2001), MIT Press, Cambridge, MA
45. Easterly W., Kremer M., Pritchett L., and Summers L.H. Good policy or good luck: country growth performance and temporary shocks. Journal of Monetary Economics 32 (1993) 459-484
46. Easterly W., and Levine R. It's not factor accumulation: stylized facts and growth models. World Bank Economic Review 15 2 (2000) 177-219
47. Engerman S., and Sokoloff K.L. The persistence of poverty in the Americas: the role of institutions. In: Bowles S., Durlauf S., and Hoff K. (Eds). Poverty Traps (2005), Princeton University Press, Princeton
48. Feyrer, J. (2003). "Convergence by parts". Mimeo, Dartmouth College
49. Freeman S. Equilibrium income inequality among identical agents. Journal of Political Economy 104 5 (1996) 1047-1064
50. Futia C.A. Invariant distributions and the limiting behavior of Markovian economic models. Econometrica 50 (1982) 377-408
51. Galor O., and Zeira J. Income distribution and macroeconomics. Review of Economic Studies 60 (1993) 35-52
52. Glynn P.W., and Henderson S.G. Computing densities for Markov chains via simulation. Mathematics of Operations Research 26 (2001) 375-400
53. Gradstein M. Governance and growth. Journal of Development Economics 73 (2004) 505-518
54. Graham, B.S., Temple, J. (2004). "Rich nations poor nations: how much can multiple equilibria explain?". Mimeo (revised version of CEPR Discussion Paper 3046)
55. Greif A., Milgrom P., and Weingast B.R. Coordination, commitment and enforcement: the case of merchant guilds. Journal of Political Economy 102 4 (1994) 745-776
56. Hall R.E., and Jones C.I. Why do some countries produce so much more output per worker than others?. Quarterly Journal of Economics 114 1 (1999) 84-116
57. Heston, A., Summers, R., Aten, B. (2002). "Penn World Table version 6.1". Center for International Comparisons, University of Pennsylvania
58. Hoff K. Beyond Rosenstein-Rodan: the modern theory of coordination problems in development. Proceedings of the World Bank Annual Conference on Development Economics 2000 (2000), World Bank, Washington, DC
59. Hoff, K., Pandey, P. (2004). "Belief systems and durable inequalities: an experimental investigation of Indian caste". World Bank Policy Research Working Paper 3351
60. Hoff K., and Sen A. The kin system as a poverty trap. In: Bowles S., Durlauf S., and Hoff K. (Eds). Poverty Traps (2005), Princeton University Press, Princeton
61. Hoff K., and Stiglitz J. After the Big Bang? Obstacles to the emergence of the rule of law in post-communist societies. American Economic Review 94 3 (2004) 753-763
62. Jalan J., and Ravallion M. Geographic poverty traps? A micro model of consumption growth in rural China. Journal of Applied Econometrics 17 (2002) 329-346
63. Johnson, P.A. (2004). "A continuous state space approach to convergence by parts". Mimeo, Vassar College
64. Kehoe T., and Levine D. Debt constrained asset markets. Review of Economic Studies 60 (1993) 865-888
65. King R.G., and Rebelo S.T. Transitional dynamics and economic growth in the neoclassical model. American Economic Review 83 4 (1993) 908-931
66. Kiyotaki N., and Moore J.H. Credit cycles. Journal of Political Economy 105 2 (1997) 211-248
67. Koopmans T. On the concept of optimal economic growth. Pontificae Academiae Scientiarum Scripta Varia 28 (1965) 225-300
68. Kremer M. The O-ring theory of economic development. Quarterly Journal of Economics 108 3 (1993) 551-575
69. Krugman P. History versus expectations. The Quarterly Journal of Economics 106 2 (1991) 651-667
70. Lambsdorff J.G. How corruption affects persistent capital flows. Economics of Governance 4 3 (2003) 229-243
71. Lasota A. Invariant principle for discrete time dynamical systems. Universitatis Iagellonicae Acta Mathematica 31 (1994) 111-127
72. Limao N., and Venables A.J. Infrastructure, geographical disadvantage, transport costs and trade. World Bank Economic Review 15 (2001) 451-479
73. Ljungqvist L. Economic underdevelopment: the case of the missing market for human capital. Journal of Development Economics 40 (1993) 219-239
74. Loury G.C. Intergenerational transfers and the distribution of earnings. Econometrica 49 (1981) 843-867
75. Lucas Jr. R.E. Adaptive behavior and economic theory. Journal of Business 59 4 (1986) 401-426
76. Lucas R.E. Why doesn't capital flow from rich to poor countries?. American Economic Review 80 2 (1990) 92-96
77. Maddison A. Monitoring the World Economy (1995), OECD Development Center, Paris
78. Magill M., and Nishimura K. Impatience and accumulation. Journal of Mathematical Analysis and Applications 98 (1984) 270-281
79. Majumdar M., Mitra T., and Nyarko Y. Dynamic optimization under uncertainty: non-convex feasible set. In: Feiwel G.R. (Ed). Joan Robinson and Modern Economic Theory (1989), MacMillan, New York
80. Matsuyama K. Increasing returns, industrialization and indeterminacy of equilibrium. Quarterly Journal of Economics 106 (1991) 617-650
81. Matsuyama K. Complementarities and cumulative processes in models of monopolistic competition. Journal of Economic Literature 33 (1995) 701-729
82. Matsuyama K. Complementarity, instability and multiplicity. Japanese Economic Review 48 3 (1997) 240-266
83. Matsuyama K. Endogenous inequality. Review of Economic Studies 67 (2000) 743-759
84. Matsuyama K. Financial market globalization, symmetry-breaking, and endogenous inequality of nations. Econometrica 72 (2004) 853-884
85. Matsuyama K., and Ciccone A. Start-up costs and pecuniary externalities as barriers to economic development. Journal of Development Economics 49 (1996) 33-59
86. Mirman, L.J., Morand, O.F., Reffett, K. (2004). "A qualitative approach to Markovian equilibrium in infinite horizon economies with capital". Mimeo, Arizona State University
87. Mirman L.J., Reffett K., and Stachurski J. Some stability results for Markovian economic semigroups. International Journal of Economic Theory 1 1 (2005)
88. Mokyr J. The Gifts of Athena: Historical Origins of the Knowledge Economy (2002), Princeton University Press, Princeton, NJ
89. Mookherjee D., and Ray D. Readings in the Theory of Economic Development (2001), Blackwell, New York
90. Mookherjee D., and Ray D. Persistent inequality. Review of Economic Studies 70 (2003) 369-393
91. Morduch, J. (1990). "Risk, production and saving: Theory and evidence from Indian households". Mimeo, Harvard University
92. Murphy K.M., Shleifer A., and Vishny R.W. Industrialization and the big push. Journal of Political Economy 97 (1989) 1003-1026
93. Murphy K.M., Shleifer A., and Vishny R.W. Why is rent-seeking so costly to growth?. American Economic Review 83 2 (1993) 409-414
94. Nelson R.R. A theory of the low level equilibrium trap. American Economic Review 46 (1956) 894-908
95. Nishimura, K., Stachurski, J. (2004). "Stability of stochastic optimal growth models: a new approach". Journal of Economic Theory, in press
96. North, D.C. (1993). "The new institutional economics and development". WUSTL Economics Working Paper Archive
97. North, D.C. (1995). "Some fundamental puzzles in economic history/development". WUSTL Economics Working Paper Archive
98. Nurkse R. Problems of Capital-Formation in Underdeveloped Countries. 1962 ed (1953), Oxford University Press, New York
99. Ottaviano G., and Thisse J.F. Agglomeration and economic geography. In: Henderson J.V., and Thisse J.F. (Eds). Handbook of Regional and Urban Economics vol. 4 (2004), Elsevier, Amsterdam
100. Parente S.L., and Prescott E.C. A unified theory of the evolution of international income levels. In: Aghion P., and Durlauf S.N. (Eds). Handbook of Economic Growth, vol. 1B (2005), Elsevier, Amsterdam
101. Piketty T. The dynamics of the wealth distribution and the interest rate with credit rationing. Review of Economic Studies 64 (1997) 173-189
102. Platteau J.-P. Institutions, Social Norms and Economic Development (2000), Harwood Publishers, Amsterdam
103. Prescott E.C. Needed: a theory of total factor productivity. International Economic Review 39 (1998) 529-549
104. Pritchett L. Divergence, big time. Journal of Economic Perspectives 11 3 (1997) 3-17
105. Quah D.T. Empirical cross-section dynamics in economic growth. European Economic Review 37 (1993) 426-434
106. Quah D. Convergence empirics across economies with (some) capital mobility. Journal of Economic Growth 1 (1996) 95-124
107. Radlet, S. (2004). "Aid effectiveness and the Millennium development goals". Manuscript prepared for the Millennium Project Task Force, United Nations Development Group
108. Ray, D. (1990). "Income distribution and macroeconomic behavior". Mimeo, New York University
109. Ray, D. (2003). "Aspirations, poverty and economic change". Mimeo, New York University
110. Ray D., and Streufert P. Dynamic equilibria with unemployment due to undernourishment. Economic Theory 3 (1993) 61-85
111. Redding S., and Venables A.J. Economic geography and international inequality. Journal of International Economics 62 (2004) 53-82
112. Rodríguez-Clare A. The division of labor and economic development. Journal of Development Economics 49 (1996) 3-32
113. Rodrik D. Coordination failures and government policy: A model with applications to East Asia and Eastern Europe. Journal of International Economics 40 (1996) 1-22
114. Romer P.M. Increasing returns and long-run growth. Journal of Political Economy 94 5 (1986) 1002-1037
115. Romer P.M. Are nonconvexities important for understanding growth?. American Economic Review 80 2 (1990) 97-103
116. Rosenstein-Rodan P. The problem of industrialization of Eastern and South-Eastern Europe. Economic Journal 53 (1943) 202-211
117. Rostow W.W. How it All Began: Origins of the Modern Economy (1975), McGraw-Hill, New York
118. Rostow W.W. The Stages of Economic Growth: A Noncommunist Manifesto. third ed (1990), Cambridge University Press, Cambridge
119. Sachs, J.D., McArthur, J.W., Schmidt-Traub, G., Kruk, M., Bahadur, C., Faye, M., McCord, G. "Ending Africa's poverty trap". Mimeo
120. Simon H.A. Rationality in psychology and economics. Journal of Business 59 4 (1986) 209-224
121. Skiba A.K. Optimal growth with a convex-concave production function. Econometrica 46 (1978) 527-539
122. Solow R.M. A contribution to the theory of economic growth. Quarterly Journal of Economics 70 (1956) 65-94
123. Stachurski J. Stochastic optimal growth with unbounded shock. Journal of Economic Theory 106 (2002) 45-60
124. Stachurski, J. (2004). "Stochastic economic dynamics". Mimeo, The University of Melbourne
125. Starrett D. Market allocations of location choice in a model with free mobility. Journal of Economic Theory 17 (1978) 21-37
126. Stokey N.L., Lucas R.E., and Prescott E.C. Recursive Methods in Economic Dynamics (1989), Harvard University Press, Cambridge, MA
127. Sugden R. Spontaneous order. Journal of Economic Perspectives 3 4 (1989) 85-97
128. Tirole J. A theory of collective reputations (with applications to persistence of corruption and to firm quality). Review of Economic Studies 63 (1996) 1-22
129. Tsiddon D. A moral hazard trap to growth. International Economic Review 33 2 (1992) 299-321
130. Van Huyck J.B., Cook J.P., and Battalio R.C. Adaptive behavior and coordination failure. Journal of Economic Behavior and Organization 32 4 (1997) 483-503
131. Young A.A. Increasing returns and economic progress. Economic Journal 28 (1928) 527-542
132. Zilibotti F. A Rostovian model of endogenous growth and underdevelopment traps. European Economic Review 39 (1995) 1569-1602