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Abstract

Dynamics of falling into and out of poverty are examined using a discrete time hazard approach, using a panel dataset of Kenyan rural households. Poverty incidence shows some level of decline over the panel period. However, the factors that determine whether a households slips into poverty or escapes poverty do not appear to be radically different. Access to more of financial resources and by association better quality farm inputs may be valuable policy options that will prevent rural farm households from falling into poverty while helping others escape poverty.

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