Publication: Rich nations, poor nations: how much can multiple equilibria explain?
Loading...
Open/View Files
Date
2001-09
Authors
Published Version
Published Version
Journal Title
Journal ISSN
Volume Title
Publisher
Center for International Development at Harvard University
The Harvard community has made this article openly available. Please share how this access benefits you.
Citation
Graham, Bryan S., and Jonathan Temple. “Rich nations, poor nations: how much can multiple equilibria explain?” CID Working Paper Series 2001.76, Harvard University, Cambridge, MA, September 2001.
Abstract
The idea that income differences between rich and poor nations arise through multiple equilibria or ‘poverty traps’ is as intuitive as it is difficult to verify. In this paper, we explore the empirical relevance of such models. We calibrate a simple two sector model for 127 countries, and use the results to analyze the international prevalence of poverty traps and their consequences for productivity. We also examine the possible effects of multiplicity on the world distribution of income, and identify events in the data that may correspond to equilibrium switching.
Description
Other Available Sources
Research Data
Keywords
Terms of Use
This article is made available under the terms and conditions applicable to Other Posted Material (LAA), as set forth at Terms of Service