Can location make the difference between growth and contraction in living standards for otherwise identical households? Apparently so. Evidence of spatial poverty traps strengthens the case for investing in the geographic capital of poor people. Can place of residence make the difference between...

While much progress has been made over the last 25 years in measuring global poverty, there are a number of challenges ahead. The paper discusses three sets of problems: (i) how to allow for social effects on welfare, recognizing the identification issues involved; (ii) the need to monitor...