In response to calls for finer targeting of spending to alleviate poverty in developing countries, this paper discusses the principles of targeting. The ideal solution is that all transfers go to the poor. However, this is unrealizable because of three factors: (a) the costs of administration...

On September 30, 1990, the first World Summit for Children promised to reduce child mortality and malnutrition. It set targets to be reached by the year 2000. Although it established no explicit goals on child labor, the targets included basic education for all children and the completion of...

Closer international integration is putting increasing pressure on existing national tax structures. This paper uses a simple two-country model to address a range of consequent policy concerns, focusing particularly on the role of country size. Differences in size exacerbate the inefficiency...

We show how an apparently welfare improving phenomenon like an increase in the wage of the male member of a family can result in a seemingly paradoxical result where the entire family is worse off. There is male and female specialization in activities such that the female member is involved in a...

The object of this paper is to investigate the implications of intrahousehold bargaining models for the behavior of intrahousehold inequality as a function of total household resources. The authors find theoretical support for Kuznets effects, i.e., a systematic pattern of inequality change as...

Standard models of labor migration suggest that migration is induced by real income differentials across locations and will, ceteris paribus, serve to reduce those differentials. And yet there is evidence that growing spatial inequality may co-exist with increased migration from poorer to richer...

This paper examines the measurement of social welfare, poverty, and inequality, taking into account features that have been found to be important welfare determinants in behavioral economics. Most notably, we incorporate reference-dependence, loss aversion, and diminishing sensitivity—aspects...

This paper looks at the recent trends of rising inequality in developing Asia, asks why inequality matters, examines the driving forces of rising inequality, and proposes policy options for tackling high and rising inequality. Technological change, globalization, and market-oriented reform have...