The Income Lever and the Allocation of Aid

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dc.creatorCeriani, Lidia
dc.creatorVerme, Paolo
dc.date2013-12-02T17:18:36Z
dc.date2013-12-02T17:18:36Z
dc.date2013-02
dc.date.accessioned2026-07-01T01:02:39Z
dc.descriptionThe paper 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 paper 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. As shown in the empirical application, this methodology can provide an equitable tool to rank countries or regions when it comes to budget or aid allocations, whether it is the allocation of social funds within the European Union (North-North transfers) or the allocation of aid from rich to poor countries (North-South transfers). The findings indicate that the allocation of social funds in the European Union follows closely the rank that results from the income lever indexes proposed while the allocation of aid to Sub-Saharan African countries does not.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttps://hdl.handle.net/10986/16327
dc.identifierhttps://doi.org/10.1596/1813-9450-6367
dc.identifier.urihttp://hdl.handle.net/123456789/414610
dc.languageen_US
dc.publisherWorld Bank, Washington, D.C.
dc.relationPolicy Research Working Paper;No.6367
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo
dc.rightsWorld Bank
dc.subjectabsolute poverty
dc.subjectabsolute poverty line
dc.subjectabsolute terms
dc.subjectaffluence
dc.subjectagricultural development
dc.subjectaid effectiveness
dc.subjectAmerican Economic Review
dc.subjectconsumer price
dc.subjectdeveloping countries
dc.subjectDevelopment Economics
dc.subjectDevelopment Goals
dc.subjectdevelopment indicators
dc.subjectdevelopment policy
dc.subjectDevelopment Report
dc.subjecteconomic development
dc.subjecteconomic growth
dc.subjectEconomic Management
dc.subjectEconomics
dc.subjectempirical application
dc.subjectempirical evidence
dc.subjectempirical literature
dc.subjectequal countries
dc.subjectexchange rate
dc.subjectExtreme Poverty
dc.subjectFinancial Flows
dc.subjectfiscal stability
dc.subjectglobal level
dc.subjectglobal poverty
dc.subjectgrowth effect
dc.subjecthousehold consumption
dc.subjecthousehold size
dc.subjecthousehold surveys
dc.subjecthuman rights
dc.subjectIncome
dc.subjectincome data
dc.subjectincome distribution
dc.subjectincome distributions
dc.subjectincome levels
dc.subjectindividual countries
dc.subjectinequality
dc.subjectLiving Conditions
dc.subjectlow income
dc.subjectlow income countries
dc.subjectlow-income countries
dc.subjectmarginal tax
dc.subjectmarginal tax rate
dc.subjectmeasurement of poverty
dc.subjectmicro data
dc.subjectmiddle income
dc.subjectmiddle income countries
dc.subjectNational Income
dc.subjectPolicy Research
dc.subjectPolitical Economy
dc.subjectpolitical instability
dc.subjectpoor
dc.subjectpoor areas
dc.subjectpoor countries
dc.subjectpoor individuals
dc.subjectpoor policies
dc.subjectpopulation share
dc.subjectpoverty eradication
dc.subjectpoverty gap
dc.subjectpoverty gap index
dc.subjectpoverty incidence
dc.subjectpoverty level
dc.subjectpoverty line
dc.subjectPoverty measurement
dc.subjectpoverty measures
dc.subjectpoverty rate
dc.subjectpoverty rates
dc.subjectPoverty Reduction
dc.subjectpoverty target
dc.subjectPublic Policy
dc.subjectPurchasing Power
dc.subjectPurchasing Power Parity
dc.subjectRedistribution Policies
dc.subjectredistributive policies
dc.subjectreducing poverty
dc.subjectRegional Competitiveness
dc.subjectRegional Development
dc.subjectRegional Development Fund
dc.subjectregional policies
dc.subjectRegional Policy
dc.subjectrich countries
dc.subjectsocial funds
dc.subjectstructural vulnerability
dc.subjecttargeting
dc.subjecttaxation
dc.subjectVolatility
dc.subjectwealth
dc.subjectwelfare variable
dc.subjectWorld Economy
dc.titleThe Income Lever and the Allocation of Aid

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