We examine the constitutional design required for democratic societies to overcome poverty traps. Restricting agenda setting by ensuring subsistence levels of consumption and applying simple majority voting as a decision rule will not enable a society to overcome poverty. We show that a...

We use panel data from the 2002-2007 period to analyze poverty dynamics in rural Mexico. The poverty measures show almost three fifths of the surveyed households experienced poverty at least once, while one fifth were cataloged as chronically poor. Additionally, asset accumulation dynamics show...

In a three period overlapping generations model with child labour, exogenous increases in child health endowments increase child labour and fertility. On the other hand, cash transfer and compulsory education funded through foreign aid have a negative effect on child labour. Foreign aid has a...