Economics of Poverty Traps

Poverty becomes a cycle that perpetuates across generations due to various circumstances and behaviors, including financial, environmental, physical, and psychological factors. This research explores the hypothesis that poverty is self-reinforcing, as the equilibrium behaviors of the poor perpetuate low standards of living. The framework introduced in this volume provides a robust platform for studying well-being dynamics in developing economies.

Format: Hardback
Length: 464 pages
Publication date: 07 December 2018
Publisher: The University of Chicago Press

Poverty is a complex and multifaceted issue that can perpetuate across generations due to a multitude of circumstances and behaviors. Understanding the factors that contribute to poverty traps is crucial for designing and evaluating policies and projects aimed at reducing poverty. This research volume explores the hypothesis that poverty is self-reinforcing because the equilibrium behaviors of the poor perpetuate low standards of living. Contributions examine the dynamic, complex processes by which households accumulate assets and increase their productivity and earnings potential, as well as the conditions under which some individuals, groups, and economies struggle to escape poverty. Investigating the full range of phenomena that generate poverty traps, including behavioral, health, resource economics, sociology, psychology, and environmental literatures, chapters in this volume present new evidence that highlights both the insights and the limits of a poverty trap lens.

The framework introduced in this volume provides a robust platform for studying well-being dynamics in developing economies. By understanding the mechanisms that contribute to poverty, policymakers and analysts can develop more effective strategies to break the cycle of poverty and promote sustainable development.

Weight: 748g
Dimension: 162 x 235 x 32 (mm)
ISBN-13: 9780226574301