for the modern technology to be used. The possibility of a poverty trap induced by high aid volatility is first examined …

modern technology to be used. The possibility of a poverty trap induced by high aid volatility is first examined in a …

This paper examines the empirical evidence in support of the poverty trap view of underdevelopment. We calibrate simple … aggregate growth models in which poverty traps can arise due to either low saving or low technology at low levels of development …. We then use these models to assess the empirical relevance of poverty traps and their consequences for policy. We find …