NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Introduction to "The Economics of Poverty Traps"

Christopher B. Barrett, Michael R. Carter, Jean-Paul Chavas

Chapter in NBER book The Economics of Poverty Traps (2019), Christopher B. Barrett, Michael R. Carter, and Jean-Paul Chavas, editors (p. 1 - 20)
Conference held June 28-29, 2016
Published in December 2018 by University of Chicago Press
© 2019 by the National Bureau of Economic Research

While the world has seen much economic growth and poverty reduction over the last few decades, extreme poverty persists. It is important to understand how households accumulate assets and increase their productivity and earning potential, as well as the conditions under which some individuals, groups, and economies struggle to escape poverty, and when and why adverse shocks have persistent welfare consequences. This introductory chapter introduces an integrative model that frames a range of possible poverty trap mechanisms explored in more detail in the book’s other chapters. The model elucidates more commonly discussed poverty trap mechanisms (financial market failures, risk and undernutrition) as well as their interaction with less frequently discussed mechanisms, including mental health, aspirations and desires. All these features may lead to endogenous behavioral patterns that in equilibrium lead households not to take actions that would enable them to escape poverty over time. We emphasize how and why these effects can be heterogeneous across household types and economic/policy environments. We also explore the implications for the effectiveness of programs and policies designed to address persistent extreme poverty, such as cash transfers and microfinance.

This chapter is no longer available for free download, since the book has been published. To obtain a copy, you must buy the book.
Order from Amazon.com

Machine-readable bibliographic record - MARC, RIS, BibTeX

Users who downloaded this chapter also downloaded* these:
Poterba Government Intervention in the Markets for Education and Health Care: How and Why?
Ang and Bekaert w6508 Regime Switches in Interest Rates
Ikegami, Carter, Barrett, and Janzen Poverty Traps and the Social Protection Paradox
Cooper, Craig, Gaynor, and Van Reenen w21815 The Price Ain’t Right? Hospital Prices and Health Spending on the Privately Insured
Santos and Barrett Heterogeneous Wealth Dynamics: On the Roles of Risk and Ability
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us