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The low-level equilibrium trap is a concept in economics developed by Richard R. Nelson, in which at low levels of per capita income people are too poor to save and invest much, and this low level of investment results in low rate of growth in national income. As per capita income rises above a certain minimum level at which there is zero saving, a rising proportion of income will be saved and invested and this will lead to higher rate of growth in income.〔〔 == Theory == The theory developed by Richard R. Nelson in his article A Theory of the Low-Level Equilibrium Trap published in 1956. According to Nelson the malady of underdeveloped economies can be diagnosed as a stable equilibrium level of per capita income at or close to subsistence requirements. At this low stable equilibrium level, both the rate of investment and saving are low. If per capita income is increased above the minimum subsistence level, it encourages growth in population. The population growth, in turn pushes down per capita income again to subsistence level. Thus the economy is caught in low level equilibrium trap. Getting out of the trap requires increasing the rate of growth of income to the levels higher than the rate of increase in population. In Nelson's opinion following four conditions are conducive to trapping: # A high correlation between the level of per-capita income and the rate of population growth # A low propensity to direct additional per-capita income to increasing per-capita investment # Scarcity of uncultivated arable land # Inefficient production methods〔 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Low-level equilibrium trap」の詳細全文を読む スポンサード リンク
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