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Do Poorer Countries Have Less Capacity for Redistribution?

By Martin Ravallion

Abstract

The government of a rich country will be disinclined to give its aid to a country that has internal capacity to tackle poverty through redistribution from people at a similar standard of living to taxpayers in that rich country. Yet we do not have tools for measuring the capacity for redistribution that reflect this property. Indeed, past measures imply heavy tax burdens on people who would be considered poor in rich countries.Do Poorer Countries Have Less Capacity for Redistribution?

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  1. (2009). Do Poorer Countries have less Capacity for Redistribution?” Policy Research Working Paper 5046, World Bank

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