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...

Great social inequality has been one of the worrisome features of economic development in Latin America. This study focuses on Chile, one of Latin America's fastest growing economies with one of the highest levels of income inequality during the 1990s. Using micro-level data from the 1994 and...

We examine how remittances relate to the exchange rate, natural disasters and foreign aid focusing on Small Island Developing States (SIDS). Using panel VAR methods, we are able to compensate for both data limitations and endogeneity issues. While remittances respond to innovations in the...