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Comment on Chapters 9 and 10

Comment on Chapters 9 and 10

Chapter:
(p.383) Comment on Chapters 9 and 10
Source:
The Economics of Poverty Traps
Author(s):
Maitreesh Ghatak
Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226574448.003.0016

A common premise underlying many antipoverty policies is that current interventions can have long- run effects, outlasting the duration of the policy. This in turn refects the fact that a notion of persistence of poverty underlies much of development economics. This means there is some underlying positive feedback mechanism—with a suitable push, the poor will be on a self- sustaining trajectory of development. If poverty was a transitional and a largely self- correcting phenomenon, such as life cycle poverty, then the effect of these policies would not be long lasting unless they are permanently in place. This is as we would expect from standard growth models (e.g., the Solow model) that feature convergence of an individual to a unique steady state within a reasonable time frame....

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