Lombardo, Vincenzo - Dipartimento di Studi Economici "Salvatore Vinci", … - 2012
This paper argues that individual concerns for relative position contribute to the emergence of development traps. It …-dynasty incomes and drives the emergence of development traps. In particular, an increase in mean income and a reduction of inequality … development traps regime as agents need to sacrifice relatively more resources in order to keep up with the reference group. …