The Income Lever and the Allocation of Aid

The article develops a concept and a measure of the monetary capacity of a country to reduce its own poverty and shows how these tools can be used to guide budget allocations or the allocation of aid. The authors call this concept the income lever. Making use of tax and distributive theory, the article shows how different redistributive criteria correspond to the different normative criteria of the income lever. It then constructs various income lever indexes based on these criteria and uses such indexes to rank countries according to their own capacity to reduce poverty.

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Bibliographic Details
Main Authors: Ceriani, Lidia, Verme, Paolo
Format: Journal Article biblioteca
Language:en_US
Published: Taylor and Francis 2014-09-24
Subjects:aid distribution, poverty reduction, redistribution, welfare,
Online Access:http://hdl.handle.net/10986/20486
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Summary:The article develops a concept and a measure of the monetary capacity of a country to reduce its own poverty and shows how these tools can be used to guide budget allocations or the allocation of aid. The authors call this concept the income lever. Making use of tax and distributive theory, the article shows how different redistributive criteria correspond to the different normative criteria of the income lever. It then constructs various income lever indexes based on these criteria and uses such indexes to rank countries according to their own capacity to reduce poverty.