M, Caucutt Elizabeth; Kumar Krishna B. - In: The B.E. Journal of Macroeconomics 8 (2008) 1, pp. 1-48
We address the poverty trap rationale for aid to Africa. We calibrate models that embody typical explanations for stagnation: coordination failures, ineffective mix of occupational choices and imperfect capital markets, and insufficient human capital accumulation coupled with high fertility....