Figure 8.5: The Ball-and-Hill Model of a Poverty Trap Lock-in
Figure 8.5 presents a 'ball-and-hill' model to visualize a poverty trap as a lock-in situation. It features two stable states: a low-wealth equilibrium (the poverty trap) on the left and a high-wealth equilibrium on the right. The 'hill' separating them symbolizes the barrier created by negative feedback loops, as detailed in Figure 8.4. To escape the trap, an individual must surpass a 'tipping point' at the top of the hill. Minor increases in wealth are insufficient, as the negative feedback will likely push the individual back into the low-wealth state.
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Introduction to Macroeconomics Course
Ch.8 Economic dynamics: Financial and environmental crises - The Economy 2.0 Macroeconomics @ CORE Econ
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Figure 8.5: The Ball-and-Hill Model of a Poverty Trap Lock-in
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Figure 8.5: The Ball-and-Hill Model of a Poverty Trap Lock-in