Poverty traps

Kiminori Matsuyama

Poverty traps

Economics

Research output: Chapter in Book/Report/Conference proceeding › Entry for encyclopedia/dictionary

Abstract

A poverty trap is a self-perpetuating condition, in which an economy suffers from persistent underdevelopment, vicious circle of poverty, created by circular causation due to the presence of some external economies and/or strategic complementarities. We discuss the concept in a dynamic setting, and review some models of poverty traps in the literature. The policy prescriptions of such models should be treated with caution, since each model identifies one cause; but as many causes are likely to coexist, attempts to pull an economy out of one trap may push it into another.

Original language	English (US)
Title of host publication	The New Palgrave Dictionary of Economics
Editors	Steven Durlauf, Lawrence E Blume
Publisher	Palgrave-Macmillan
Edition	2
ISBN (Print)	978-0-333-78676-5
State	Published - 2008

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title = "Poverty traps",

abstract = "A poverty trap is a self-perpetuating condition, in which an economy suffers from persistent underdevelopment, vicious circle of poverty, created by circular causation due to the presence of some external economies and/or strategic complementarities. We discuss the concept in a dynamic setting, and review some models of poverty traps in the literature. The policy prescriptions of such models should be treated with caution, since each model identifies one cause; but as many causes are likely to coexist, attempts to pull an economy out of one trap may push it into another.",

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TY - CHAP

T1 - Poverty traps

AU - Matsuyama, Kiminori

PY - 2008

Y1 - 2008

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AB - A poverty trap is a self-perpetuating condition, in which an economy suffers from persistent underdevelopment, vicious circle of poverty, created by circular causation due to the presence of some external economies and/or strategic complementarities. We discuss the concept in a dynamic setting, and review some models of poverty traps in the literature. The policy prescriptions of such models should be treated with caution, since each model identifies one cause; but as many causes are likely to coexist, attempts to pull an economy out of one trap may push it into another.

M3 - Entry for encyclopedia/dictionary

SN - 978-0-333-78676-5

BT - The New Palgrave Dictionary of Economics

A2 - Durlauf, Steven

A2 - Blume, Lawrence E

PB - Palgrave-Macmillan

ER -

Poverty traps

Abstract

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