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Effects of Alternative Policies on Income Redistribution: Evidence from Brazil
Author(s) -
Dos Santos Vladimir Faria,
Da Cruz Vieira Wilson,
Dos Santos Reis Bricio
Publication year - 2009
Publication title -
development policy review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.671
H-Index - 61
eISSN - 1467-7679
pISSN - 0950-6764
DOI - 10.1111/j.1467-7679.2009.00461.x
Subject(s) - redistribution (election) , economics , redistribution of income and wealth , computable general equilibrium , incentive , welfare , cash transfers , transfer payment , income distribution , cash , labour economics , public economics , macroeconomics , market economy , inequality , political science , mathematical analysis , mathematics , politics , law , unemployment
Despite recent successes, Brazilian income (cash) transfer policies remain controversial, and alternative approaches to income redistribution are being actively considered. This article contributes to this debate, analysing the effects of several alternative policies for income redistribution in the Brazilian economy using a computable general equilibrium model. Simulations were conducted consistent with the following policies: direct transfer of income, reduction of taxes, and incentives to agricultural exports. The results suggest that transfer of income is the most effective in promoting redistribution of income, with a positive impact on the level of welfare of the poorest households.