Is there a poverty trap in Paraguay? : evidence from pseudo-panels and nonlinear income dynamics
Date
2025-04
Authors
Delait, Bruno Norbert
Lanusse, Serena
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Hüppi Lo Prete, Pilar
Journal Title
Journal ISSN
Volume Title
Publisher
Universidad de San Andrés. Departamento de Economía
Abstract
This investigation examines the existence of income poverty traps in Paraguay’s urban and rural areas. In order to do so, dynamic pseudo panels are used to overcome difficulties that arise with traditional panels: lack of long panels in developing countries, measurement error and attrition. For rural areas, we find non linear income dynamics, but no evidence of poverty traps, even allowing for cohort heterogeneity. On the other hand, our outcomes for urban areas vary between models, as we find that for some specifications there is an unstable equilibrium that could lead to households getting trapped below a certain threshold, although this threshold is below the data range for urban income.
Description
Fil: Delait, Bruno Norbert. Universidad de San Andrés. Departamento de Economía; Argentina.
Fil: Lanusse, Serena. Universidad de San Andrés. Departamento de Economía; Argentina.
Fil: Lanusse, Serena. Universidad de San Andrés. Departamento de Economía; Argentina.