Dalton, Patricio S. (Patricio Santiago), Ghosal, Sayantan and Mani, Anandi (2016) Poverty and aspirations failure. The Economic Journal, 126 (590). pp. 165-188. doi:10.1111/ecoj.12210 ISSN 0013-0133.
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Abstract
We develop a theoretical framework to study the psychology of poverty and ‘aspirations failure’, defined as the failure to aspire to one's own potential. In our framework, rich and the poor persons share the same preferences and same behavioural bias in setting aspirations. We show that poverty can exacerbate the effects of this behavioural bias leading to aspirations failure and hence, a behavioural poverty trap. Aspirations failure is a consequence of poverty, rather than a cause. We specify the conditions under which raising aspirations alone is sufficient to help escape from a poverty trap, even without relaxing material constraints.
| Item Type: | Journal Article |
|---|---|
| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HC Economic History and Conditions |
| Divisions: | Faculty of Social Sciences > Economics |
| Library of Congress Subject Headings (LCSH): | Poverty -- Psychological aspects -- Mathematical models, Ambition |
| Journal or Publication Title: | The Economic Journal |
| Publisher: | Wiley-Blackwell Publishing Ltd. |
| ISSN: | 0013-0133 |
| Official Date: | February 2016 |
| Dates: | Date Event February 2016 Published 2 July 2015 Available 18 July 2014 Accepted |
| Volume: | 126 |
| Number: | 590 |
| Page Range: | pp. 165-188 |
| DOI: | 10.1111/ecoj.12210 |
| Status: | Peer Reviewed |
| Publication Status: | Published |
| Access rights to Published version: | Open Access (Creative Commons open licence) |
| Date of first compliant deposit: | 31 January 2017 |
| Date of first compliant Open Access: | 31 January 2017 |
| Funder: | Economic and Social Research Council (Great Britain) (ESRC), Great Britain. Department for International Development |
| Grant number: | ES-16-25-0364 |
| Adapted As: | |
| URI: | https://wrap.warwick.ac.uk/85609/ |
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