Standard economic analysis assumes the sets of public and private goods to be exogenously given. Yet societies very often choose the public-private mix, using resources to convert seemingly private goods into ones with public goods characteristics and vice versa. And, in practice, we see a...

This commentary poses a series of progressively harder questions in the economic analysis of growth, inequality and poverty. Starting with relatively straightforward analysis of the relationship between growth and inequality, the first level of hard questions come when we ask what policies and...

The global International Financial Institutions (IFI’s) increasingly justify their operations in terms of the provision of International Public Goods (IPG’s). This is partly because there appears to be support among the rich countries of the North for expenditures on these IPG’s, in...

How does development economics address the issue of gains and losses from the displacement that inevitably accompanies many development processes? This paper argues that economists have struggled mightily between the core criterion of a “Pareto improvement”, which vests individuals with...

This paper establishes some general principles of the rationale for development assistance in Middle Income Countries and then applies these principles to the operations of the World Bank. It then puts the argument through its paces for the specific case of India, which has just transitioned...

Two decades ago, 93% of the world’s poor lived in countries officially classified as Low Income (LICs). Now, 72% of the world’s poor live in Middle Income Countries (MICs). The dramatic shift has been brought about by fast growth in a number of countries with large populations. On present...

Governance and the “Karnataka Model of Development” Gopal Kadekodi, Ravi Kanbur and Vijayendra Rao; Change in Karnataka Over the Last Generation: Villages and the Wider Context James Manor; The Political Economy of Gram Panchayats in South India Timothy Besley, Rohini Pande and Vijayendra...

The standard theory of anti-poverty targeting assumes individual incomes cannot be observed, but statistical properties of income distribution in broadly defined groups are known. Targeting rules are then derived for the forms of transfers conditioned on group membership of individuals. In this...

This collection of essays honors a remarkable man and his work. Erik Thorbecke has made significant contributions to the microeconomic and the macroeconomic analysis of poverty, inequality and development, ranging from theory to empirics and policy. The essays in this volume display the same...

Certain markets evoke popular discomfort, distrust and even outrage. Trade in arms, drugs, toxic waste, child labor and body parts, for example, elicits these reactions to different degrees. This paper asks—what is it about some markets that brings about these responses? It is argued that...