Spillovers , stratification , and inequality

@inproceedings{Durlauf2001SpilloversS,
  title={Spillovers , stratification , and inequality},
  author={Steven Durlauf},
  year={2001}
}
This paper surveys some recent work which seeks to model persistent income inequality and explain such phenomena as ghetto formation and poverty traps. The paper illustrates how a number of these models possess a common structure in which local spillover effects interact with income-based stratification of neighborhoods to transmit parental economic status from generation to generation. As such, these models represent an extension of the macroeconomic literature on spillovers and coordination… CONTINUE READING
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