The analysis of the distributional impact of policy reforms on the well-being or welfare of different stakeholder groups, particularly on the poor and vulnerable, has an important role in elaborating and implementing poverty reduction strategies in developing countries. In recent years this type of work, labeled as Poverty and Social Impact Analysis (PSIA), is increasingly implemented in order to promote evidence-based policy choices and foster debate on policy reform options. Although information is available on the general approach, techniques, and tools for distributional analysis, each reform area displays a series of specific characteristics. These have implications for the analysis of distributional impacts, including in terms of the types of impacts and transmission channels that warrant particular attention, the tools and techniques most appropriate, the data sources typically utilized, and the range of political economy factors most likely to affect the reform...

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