Aid Allocation and Poverty Reduction

  title={Aid Allocation and Poverty Reduction},
  author={D. Dollar and P. Collier},
  • D. Dollar, P. Collier
  • Published 1999
  • Economics
  • The authors derive a poverty-efficient allocation of aid and compare it with actual aid allocations. They build the poverty-efficient allocation in two stages. First they use new World Bank ratings of 20 different aspects of national policy to establish the current relationship between aid, policies, and growth. Onto that, they add a mapping from growth to poverty reduction, which reflects the level and distribution of income. They compare the effects of using headcount and poverty-gap measures… CONTINUE READING
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