This paper develops a modest proposal for introducing final outcome indicators in the IDA aid allocation formula. It starts with a review of the current formula and the rationale for it. It is argued that this formula, and in particular the Country Policy and Institutional Assessment (CPIA) part...

The standard theory of optimal income taxation under uncertainty has been developed under the assumption that individuals maximize expected utility. However, prospect theory has now been established as an alternative model of individual behaviour, with empirical support. This paper explores the...

While there is a general view that poverty and inequality can lead to conflict and are therefore in this sense security issues, the precise nature of the links is less well appreciated. Focusing on conflicts within states, this paper draws out the links based on the recent economics literature,...