Short-lived shocks with long-lived impacts?

Short-lived shocks with long-lived impacts?

by Michael Lokshin

Part of Policy research working paper ;

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In theory it is possible that a vulnerable household will never recover from a sufficiently large but short-lived shock to its income, which could explain the persistent poverty that has emerged in many transition economies. But this study for Hungary shows that, in general, households bounce back from transient shocks, although not rapidly.

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