Theories of poverty traps stand in sharp contrast to the view that anybody can make it through hard work and thrift. However, empirical detection of poverty traps is complicated by the lack of long panels, measurement error, and attrition. This paper shows how dynamic pseudo-panel methods can overcome these difficulties, allowing estimation of non-linear income dynamics and testing for the presence of poverty traps. The paper explicitly allows for...
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INFORMATION
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2005/11/01
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Document de travail de recherche sur les politiques
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WPS3764
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1
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1
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2010/07/01
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Disclosed
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Poverty traps and nonlinear income dynamics with measurement error and individual heterogeneity
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poverty trap
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