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In this paper, we evaluate income distributions in four European countries (Austria, Italy, Spain and Hungary) using two complementary approaches: a standard approach based on reported incomes in survey data, and a microsimulation approach, where taxes and benefits are simulated. These two approaches may be expected to generate slightly different results, particularly in respect of individuals on lower incomes, because benefit receipts tend to be under-reported in survey data, and over-estimated in microsimulation procedures. However, we find that the two approaches do in fact produce reasonably consistent results, in terms of both inequality measures and poverty rates. To the extent that the results differ, we explore the reasons why these differences arise, and suggest directions for future research, in which each approach may inform improvements in the other. [ABSTRACT FROM AUTHOR]

The aim of this work is to determine the factors affecting development, not only the economic ones, which play a central role in economic literature, but also social. To do so we have used a wide sample of countries and have estimated a panel data for 171 of those that have been members of the United Nations for a period of 16 years (from 1995 to 2010 inclusive). The results obtained allow us to conclude that fight against poverty, provision of basic infrastructure, and investment in greater democracy, greater stability and less corruption, have, in all cases, a positive effect on human development in these countries. [ABSTRACT FROM AUTHOR]

We examine how the interaction between education and corruption affects institutional reform and economic development. While corruption reduces average income and education, education increases not only output and hence potential corruption rents, but also produces more informed electorates that better monitor government actions. We find that economies with intermediate levels of education remain in a poverty trap since the level of skills creates sufficient corruption rents but not enough monitoring. Economies with low or high levels of education can escape the poverty trap, and inequality plays a key role in determining whether this occurs through a change in institutions or an expansion of education. [ABSTRACT FROM AUTHOR]