List of figures ix List of boxes xi List of tables xii List of contributors xv PART I Issues in macroeconomics and poverty 1 (112) Can public policies lower poverty? An overview 3 (11) Ashoka Mody Catherine Pattillo 1 Macroeconomic policies and poverty reduction: stylized facts and an overview of research 14 (22) Ratna Sahay Paul Cashin Paolo Mauro Catherine Pattillo 2 Evaluating the poverty impact of economic policies: some analytical challenges 36 (35) Francois Bourguignon Luiz A. Pereira Da Silva Nicholas Stern 3 Trade, growth, and poverty: a selective survey 71 (42) Andrew Berg Anne Krueger PART II Public finances 113 (76) 4 Odious debt 115 (11) Seema Jayachandran Michael Kremer 5 Aid and fiscal management 126 (25) Ales Bulir Timothy Lane 6 Who is protected? On the incidence of fiscal adjustment 151 (22) Martin Ravallion 7 Understanding the evolution of inequality during transition: the optimal income taxation framework 173 (16) Ravi Kanbur Matti Tuomala PART III Finance and trade 189 (84) 8 Evaluation of financial liberalization: a general equilibrium model with constrained occupation choice 191 (41) Xavier Gine Robert M. Townsend 9 Trade reforms and wage inequality in Colombia 232 (41) Orazio Attanasio Pinelopi K. Goldberg Nina Pavcnik PART IV Crises and shocks 273 (110) 10 Financial crises, poverty, and income distribution 275 (42) Emanuele Baldacci Luiz De Mello Gabriela Inchauste 11 Growth and shocks: evidence from rural Ethiopia 317 (23) Stefan Dercon 12 Economic shocks, wealth, and welfare 340 (43) Elizabeth Frankenberg James P. Smith Duncan Thomas Index 383