This paper uses survey data from 13 countries to document the economic lives of the poor (those living on less than $2 dollar per day per capita at purchasing power parity) or the extremely poor (those living on less than $1 dollar per day). We describe their patterns of consumption and income generation as well as their access to markets and publicly provided infrastructure. The paper concludes with a discussion of some apparent anomalous choices.

The Economic Lives of the Poor

In what turned out to be a rhetorical master-move, the 1990 World Development Report from the World Bank defined the “extremely poor” people of the world as those who are currently living on no more than $1 per day per person, measured at the 1985 purchasing power parity (PPP) exchange rate. In 1993, the poverty line was updated to $1.08 per person per day at the 1993 PPP exchange rate, which is the line we use in this paper. Poverty lines have always existed—indeed $1 per day was chosen in part because of its proximity to the poverty lines used by many poor countries.1 However the $1-a-day poverty line has come to dominate the conversations about poverty to a remarkable extent.

/pdf/the-economic-lives-of-the-poor-3yi342uxj3.pdf

The Economic Lives of the Poor.

This paper is an introduction to the special issue from the 3rd Global Entrepreneurship Monitor Research Conference held in Washington, D.C., in 2008. The paper has three objectives. First, to discuss the importance of the three stages of economic development, the factor-driven stage, the efficiency-driven stage and the innovation-driven stage. Second, to examine the empirical evidence on the relationship between stages of economic development and entrepreneurship. Third, to present a summary of the papers in the context of the theory.

/pdf/entrepreneurship-economic-development-and-institutions-3stexbbi3t.pdf

Entrepreneurship, economic development and institutions

We estimate the effect of broadband infrastructure, which enables high-speed internet, on economic growth in the panel of OECD countries in 1996-2007. Our instrumental variable model derives its non-linear first stage from a logistic diffusion model where pre-existing voice telephony and cable TV networks predict maximum broadband penetration. We find that a 10 percentage point increase in broadband penetration raised annual per capita growth by 0.9-1.5 percentage points. Results are robust to country and year fixed effects and controlling for linear second-stage effects of our instruments. We verify that our instruments predict broadband penetration but not diffusion of contemporaneous technologies like mobile telephony and computers.

https://www.isto.bwl.uni-muenchen.de/download/forschung/ictcm/czernich_et_al.pdf

Broadband infrastructure and economic growth

National Systems of Entrepreneurship: Measurement issues and policy implications

4: The entrepreneurial society

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4: The entrepreneurial society