This paper studies the causal mechanisms behind poverty traps, building on evidence of nonlinear wealth dynamics among a poor pastoralist population, the Boran from southern Ethiopia. In particular, it explores the roles of adverse weather shocks and individual ability to cope with such shocks...

This paper explores the consequences of nonlinear wealth dynamics on the formation of informal insurance networks. Building on recent empirical work among a poor population that finds evidence consistent with the hypothesis of poverty traps, and using original primary data on social networks and...