The ability of low-income countries to productively absorb large amounts of external assistance is a central issue for efforts to scale-up aid. This paper examines absorptive capacity in the context of MDG-based development programmes in low-income countries. It first defines absorptive...

This paper inverts the usual logic of applied optimal income taxation. It starts from the observed distribution of income before and after redistribution and corresponding marginal tax rates. Under a set of simplifying assumptions, it is then possible to recover the social welfare function that...

This paper proposes a method to decompose earnings inequality into a component due to unequal opportunities and a residual term. Drawing on the distinction between 'circumstance' and 'effort' variables in John Roemer's work on equality of opportunity, we associate inequality of opportunities...

This paper addresses the issue of the impact of aid supply on aid effectiveness. We proceed in two steps. First, we review research works that deal with the problem of governance in donor-recipient relationships and are susceptible of highlighting effects of aggregate aid availability. Second,...

Aid co-ordination is a constant theme of discussion among national and international aid agencies in their search for more effectiveness and efficiency in delivering development assistance. This paper seeks to clarify some of the arguments currently made in support of aid co-ordination, and to...

Drawing on a comprehensive compilation of quantile shares and inequality measures for 34 countries, including over 5,600 estimated Gini coefficient, we review the measurement of income inequality in Latin America and the Caribbean over the last seven decades. Although the evidence from the first...

C'est la mission de ceux qui sont invités à prononcer cette conférence annuelle prestigieuse que d'illustrer comment la science économique permet de guider la décision dans des situations réelles et d'orienter l'action des managers d'entreprise ou des politiciens. Par son oeuvre...

This is a background note to a joint IPEA/World Bank Report, provisionally entitled "Selected Topics on Income Inequality in Brazil", with publication planned for 2001. The purpose of the note is twofold. First we propose four central questions which the Report should seek to address, and around...

Tony Atkinson is universally celebrated for his outstanding contributions to the measurement and analysis of inequality, but he never saw the study of inequality as a separate branch of economics. He was an economist in the classical sense, rejecting any sub-field labelling of his interests and...

This paper develops a micro-econometric method to account for differences across distributions of household income. Going beyond the determination of earnings in labor markets, we also estimate statistical models for occupational choice and for the conditional distributions of education,...