The economics of poverty traps part one: Complete markets

摘要: This paper lists theoretical reasons why neoclassical models of one-sector growth imply that nations with identical economic structures need not converge to the same steady state or balanced path, and outlines empirical significance policy implications conditional nonconvergence. We survey poverty traps in both convex nonconvex economies complete market structures. Among potential causes are subsistence consumption; distorted international trade intermediate inputs; demographic transitions when fertility is endogenous; technological complementarities production consumption goods, financial intermediation services, manufactures, human capital; coordination failures among voters; various restrictions on borrowing; indivisibilities capital formation child rearing; monopolistic competition product factor markets.