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The Income Lever and the Allocation of Aid

Author

Listed:
  • Lidia Ceriani
  • Paolo Verme

Abstract

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.

Suggested Citation

  • Lidia Ceriani & Paolo Verme, 2014. "The Income Lever and the Allocation of Aid," Journal of Development Studies, Taylor & Francis Journals, vol. 50(11), pages 1510-1522, November.
  • Handle: RePEc:taf:jdevst:v:50:y:2014:i:11:p:1510-1522
    DOI: 10.1080/00220388.2014.951037
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    References listed on IDEAS

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    1. Patrick GUILLAUMONT, 2008. "Adapting Aid Allocation Criteria to Development Goals," Working Papers P01, FERDI.
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    More about this item

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • F3 - International Economics - - International Finance

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