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Rich Nations, Poor Nations: How much can multiple equilibria explain?

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Author Info
Graham, Bryan S. (Harvard University)
Jonathan Temple (University of Bristol)

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Abstract

The idea that income differences between rich and poor nations arise through multiple equilibria or 'poverty traps' is as intuitive as it is difficult to verify. In this paper, we explore the empirical relevance of such models. We calibrate a simple two sector model for 127 countries, and use the results to analyze the international prevalence of poverty traps and their consequences for productivity. We also examine the possible effects of multiplicity on the world distribution of income, and identify events in the data that may correspond to equilibrium switching.

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Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2002 with number 91.

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Date of creation: 29 Aug 2002
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Handle: RePEc:ecj:ac2002:91

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  1. repec:att:wimass:1920516 is not listed on IDEAS
  2. Francesco Caselli, 2005. "Accounting for Cross-Country Income Differences," CEP Discussion Papers dp0667, Centre for Economic Performance, LSE. [Downloadable!]
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  3. M. Scarlato & M. Cenci, 2004. "Innovazione tecnologica e offerta di skills:una simulazione," Computational Economics 0401003, EconWPA. [Downloadable!]
  4. Dietz Vollrath, 2008. "The Dual Economy in Long-run Development," Working Papers 2008-03, Department of Economics, University of Houston. [Downloadable!]
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  5. Florian Englmaier & Markus Reisinger, 2006. "Information, Coordination, and the Industrialization of Countries," Discussion Papers 87, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]
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  6. Costas Aariadis & John Stachurski, 2004. "Poverty Traps," Department of Economics - Working Papers Series 913, The University of Melbourne. [Downloadable!]
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    • Azariadis, Costas & Stachurski, John, 2005. "Poverty Traps," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 5 Elsevier. [Downloadable!] (restricted)
  7. Kimberly Ann Elliott & Debayani Kar & J. David Richardson, 2002. "Assessing Globalization's Critics: "Talkers Are No Good Doers???"," Peterson Institute Working Paper Series WP02-5, Peterson Institute for International Economics. [Downloadable!]
  8. Jonathan Temple, 2002. "The Costs of Dualism," Bristol Economics Discussion Papers 02/532, Department of Economics, University of Bristol, UK. [Downloadable!]
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  9. Kraay, Aart & Raddatz, Claudio, 2005. "Poverty traps, aid, and growth," Policy Research Working Paper Series 3631, The World Bank. [Downloadable!]
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  10. Alan Martina, 2007. "A Class of Poverty Traps: A Theory and Empirical Tests," ANUCBE School of Economics Working Papers 2007-482, Australian National University, College of Business and Economics, School of Economics. [Downloadable!]
  11. Johnson, Paul, 2003. "A Continuous State Space Approach to “Convergence by Parts”," Vassar College Department of Economics Working Paper Series 54, Vassar College Department of Economics. [Downloadable!]
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  12. Strulik, Holger, 2008. "Degrees of Development - How Geographic Latitude Sets the Pace of Industrialization and Demographic Change," Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät der Universität Hannover dp-384, Universität Hannover, Wirtschaftswissenschaftliche Fakultät. [Downloadable!]
  13. Areendam Chanda & Carl-Johan Dalgaard, . "Dual Economies and International Total Factor Productivity Differences," Departmental Working Papers 2005-11, Department of Economics, Louisiana State University. [Downloadable!]
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  14. Leopoldo Yanes, . "Endogenous Technological Capability,Trade Policy and Coordination Failure: A Reconsideration of Economic Take-Off(s)," MRG Discussion Paper Series 1306, School of Economics, University of Queensland, Australia. [Downloadable!]
  15. Lilia Maliar & Dmytro Kylymnyuk & Serguei Maliar, 2005. "A Model Of Unbalanced Sectorial Growth With Application To Transition Economies," Working Papers. Serie AD 2005-26, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
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  16. Haaparanta, Pertti & Puhakka, Mikko, 2004. "Endogenous time preference, investment and development traps," BOFIT Discussion Papers 4/2004, Bank of Finland, Institute for Economies in Transition. [Downloadable!]
  17. Jonathan Temple, 2006. "Aggregate Production Functions and Growth Economics," International Review of Applied Economics, Taylor and Francis Journals, vol. 20(3), pages 301-317, July. [Downloadable!] (restricted)
  18. Steven N. Durlauf & Andros Kourtellos & Chih Ming Tan, 2005. "Empirics of Growth and Development," Discussion Papers Series, Department of Economics, Tufts University 0520, Department of Economics, Tufts University. [Downloadable!]
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