Poverty and Aspirations Failure

Patricio Dalton (), Sayantan Ghosal and Anandi Mani
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Anandi Mani: Tilberg University

CAGE Online Working Paper Series from Competitive Advantage in the Global Economy (CAGE)

Abstract: This paper models the role of internal constraints in causing aspirations failure at the individual level. It shows how initial disadvantage increases the likelihood of binding internal constraints and hence aspirations failure, thus suggesting a new behavioral explanation for poverty traps. In examining common approaches to relaxing such internal constraints, it describe how an individual’s endogenous choice of a "cognitive window" (i.e. a set of relevant "similar" individuals)can limit the e¤ectiveness of role models. Further, we consider how the distribution of initial status determines the degree of connectedness in a society and hence the individual perception of these constraints. Our work provides a normative justification for programs that aim to empower participants through a direct positive shock to their aspirations.

Date: 2010
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Citations: View citations in EconPapers (48)

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https://warwick.ac.uk/fac/soc/economics/research/c ... /22.2010_revised.pdf

Related works:
Journal Article: Poverty and Aspirations Failure (2016)
Working Paper: Poverty and Aspirations Failure (2011)
Working Paper: Poverty and Aspirations Failure (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:cge:wacage:22

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