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This article examines the role of distributional analysis as a complement to cost-benefit analysis and discusses ways in which the distribution of policy impacts could affect their valuations. For developing and emerging countries, many of which face extremely pressing issues of poverty and inequality, the distribution of costs and benefits can have important social impacts. An appropriate account for distribution is therefore heightened in the development context. Surveying the options that are available to policymakers to account for distributional concerns, the authors conclude that certain types of distributional analysis are likely to lead to better decision making.