Development Traps

Overview:

Galor Oded, "Convergence? Inferences from Theoretical Models," Economic Journal, 106, 1056- 1069, (July 1996)

Video Presentation:

PREM Conference: Moving Out of Poverty Traps

Sources of Development Traps:

· Credit Markets Imperfections

o Local non-convexity in the production of Human capital:

Galor Oded and Joseph Zeira, "Income Distribution and Macroeconomics," Review of Economics Studies, 60, 35-52 (January 1993)

o Marginal propensity to bequeath increases with Wealth

Galor Oded and Omer Moav, "From Physical to Human Capital Accumulation: Inequality and the Process of Development," Review of Economic Studies, 71, 1001-1026 (October 2004)

· Comparative Advantage within the Household

Galor Oded and David N. Weil, "The Gender Gap, Fertility, and Growth," American Economic Review, 86, 374-387, (June 1996)

· Externalities in Human Capital Formation

Galor Oded and Daniel Tsiddon, "The Distribution of Human Capital, Technological Progress, and Economic Growth," Journal of Economic Growth, 2, 93-124 (March 1997)

Traps in Conventional Growth Models:

Galor Oded, "A Two-Sector Overlapping-Generations Model: A characterization of the Dynamical System," Econometrica, 60, 351-386, (November, 1992).

Galor Oded and Harl E. Ryder, "Existence, Uniqueness and Stability of Equilibrium in an Overlapping-Generations Model with Productive Capital," Journal of Economic Theory, 49, 360-375, (December 1989).