Regional Agricultural Endowments and Shifts of Poverty Trap Equilibria: Evidence from Ethiopian Panel Data

Institute for International Economic Policy Working Paper No. 2011-01

50 Pages Posted: 27 Apr 2011

See all articles by Stephen C. Smith

Stephen C. Smith

George Washington University - Department of Economics

Sungil Kwak

Korea Institute for International Economic Policy

Date Written: April 6, 2011

Abstract

We introduce new approaches to research on poverty traps, focusing on changes in patterns of equilibria over time and across regions, applied to the Ethiopia Rural Household Survey. We revisit the incidence of multiple equilibria using new nonparametric techniques; we also emphasize conditions of single equilibria that remain stagnant below the poverty line. We identify a single equilibrium in our initial interval (1994-1999) but find evidence that a second, higher equilibrium is emerging in the subsequent (1999-2004) interval. One of three major regions exhibits a deeply impoverished equilibrium that does not improve despite a national environment of pro-poor growth.

Suggested Citation

Smith, Stephen C. and Kwak, Sungil, Regional Agricultural Endowments and Shifts of Poverty Trap Equilibria: Evidence from Ethiopian Panel Data (April 6, 2011). Institute for International Economic Policy Working Paper No. 2011-01, Available at SSRN: https://ssrn.com/abstract=1824349 or http://dx.doi.org/10.2139/ssrn.1824349

Stephen C. Smith (Contact Author)

George Washington University - Department of Economics ( email )

2115 G Street NW
306 Monroe Hall
Washington, DC 20052
United States

HOME PAGE: http://https://www2.gwu.edu/~iiep/about/faculty/ssmith/

Sungil Kwak

Korea Institute for International Economic Policy ( email )

[30147] Building C, Sejong National Research Compl
Seoul, 370
Korea, Republic of (South Korea)

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