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Poverty Traps

In: Handbook of Economic Growth

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Author Info
Azariadis, Costas
Stachurski, John

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Abstract

This survey reviews models of self-reinforcing mechanisms that cause poverty to persist. Some of them examine market failure in environments where the neoclassical assumptions on markets and technology break down. Other mechanisms include institutional failure which can, by itself, perpetuate self-reinforcing poverty. A common thread in all these mechanisms is their adverse impact on the acquisition of physical or human capital, and on the adoption of modern technology. The survey also reviews recent progress in the empirical poverty trap literature.

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This chapter was published in: Philippe Aghion & Steven Durlauf (ed.) Handbook of Economic Growth, , chapter 05, 2005.

This item is provided by Elsevier in its series Handbook of Economic Growth with number 1-05.

Handle: RePEc:eee:grochp:1-05

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This chapter was published in the following book, which is listed on IDEAS:
Philippe Aghion & Steven Durlauf (ed.), 2005. "Handbook of Economic Growth," Handbook of Economic Growth, Elsevier, edition 1, volume 1, number 1. [Downloadable!] (restricted)
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O0 - Economic Development, Technological Change, and Growth - - General

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