Using Microdata to Trace Poverty Traps in Ethiopia

The present study examines multiplicity in wealth dynamics and associated poverty traps in rural Ethiopia. Based on theoretical models, I find empirical evidence for poverty traps for several crucial factor inputs for households in the Ethiopian Rural Household Survey. This motivates a dynamic model for household wealth, allowing for both a high-level and a low-level basin of attraction, but the initial conjecture of a poverty trap is not confirmed. This gives rise to a discussion of empirical as well as methodological issues surrounding the empirical examination of nonlinear wealth dynamics

Year of publication:	2014
Authors:	Kuhl, Jesper
Publisher:	[S.l.] : SSRN
Subject:	Äthiopien \| Ethiopia \| Armut \| Poverty \| Mikrodaten \| Microdata

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