Chapter 5 Poverty Traps

  • Costas Azariadis
  • , John Stachurski

    Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

    208 Scopus citations

    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.

    Original languageEnglish
    Title of host publicationHandbook of Economic Growth
    EditorsPhilippe Aghion, Steven Durlauf
    Pages295-384
    Number of pages90
    EditionSUPPL. PART A
    DOIs
    StatePublished - 2005

    Publication series

    NameHandbook of Economic Growth
    NumberSUPPL. PART A
    Volume1
    ISSN (Print)1574-0684

    Keywords

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

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