The institutions of poverty
Institutions shape the incentives and opportunities people find and create. The institutions of poverty discourage accumulations of assets, disable accountability of governance, and dilute potential. After an empirical overview of past and present prevalence of poverty and its scholarly explanations, the macro-economic conditions of poverty are outlined. At the core of the chapter is the discussion of four institutions of poverty within economies; those are lack of assets, lack of accountability, lack of income predictability, and unfavorable spatial distribution. Analyzing the four institutions concurrently will explain poverty within any one country, either low- or high-income, and will allow establishing the level and persistence of poverty in any given country. Their relative weight as determinants of poverty persistence is situation-specific, i. e. differs from region to region, country to country, and social set-up to social-set-up. Selected case-studies – of worldwide microfinance, of Germany's labor market reform, of India's Rural Employment Guarantee act – illustrate the heuristic framework that this chapter proposes to students and policy makers concerned of poverty.
|Date of creation:||2008|
|Date of revision:|
|Publication status:||Published in Welfare Economics Chapter 1 (2009): pp. 35-59|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jeffrey A. Frankel, 1997. "Regional Trading Blocs in the World Economic System," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 72.
- Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004.
"Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development,"
Journal of Economic Growth,
Springer, vol. 9(2), pages 131-165, 06.
- Rodrik, Dani & Subramanian, Arvind & Trebbi, Francesco, 2002. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," CEPR Discussion Papers 3643, C.E.P.R. Discussion Papers.
- Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2002. "Institutions Rule: The Primacy of Institutions over Geography and Integration in Economic Development," NBER Working Papers 9305, National Bureau of Economic Research, Inc.
- T. Kämpke & R. Pestel & F.J. Radermacher, 2003. "A Computational Concept for Normative Equity," European Journal of Law and Economics, Springer, vol. 15(2), pages 129-163, March.
- S. Mahendra Dev, 2008. "India," Chapters, in: Handbook on the South Asian Economies, chapter 1 Edward Elgar Publishing.
- Banerjee, Abhijit Vinayak & Benabou, Roland & Mookherjee, Dilip (ed.), 2006. "Understanding Poverty," OUP Catalogue, Oxford University Press, number 9780195305203, June.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:24411. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.