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Intervenção governamental, crescimento e bem-estar: efeitos da política de equalização das taxas de juros do crédito rural nas regiões brasileiras [Governmental intervention, growth and welfare: effects of the equalization policy of rural credit interest in Brazilian regions]

Author

Listed:
  • Débora Freire Cardoso

    (CEDEPLAR/UFMG)

  • Erly Cardoso Teixeira

    (UFV)

  • Ângelo Costa Gurgel

    (FGV-SP)

  • Eduardo Rodrigues de Castro

    (UFSCAR-Sorocaba)

Abstract

The paper’s overall objective is to evaluate the impacts of government spending with the Interest Rates Equalization (IRE) policy in the economic growth and welfare of the Five Brazilian macro-regions. Simulations were performed using the model, database and software of the General Equilibrium Analysis Project of the Brazilian Economy (PAEG). The results show that the IRE policy provides economic growth in the Midwest, Northeast, and South regions that are greater than the cost of the policy. Moreover, in the North and East regions there is a decrease in the GDP. For Brazil, the policy is cost-effective and offers a 34% return. Furthermore, all regions are benefiting in terms of welfare. We conclude that the IRE policy is efficient and contributes to reducing regional disparities.

Suggested Citation

  • Débora Freire Cardoso & Erly Cardoso Teixeira & Ângelo Costa Gurgel & Eduardo Rodrigues de Castro, 2014. "Intervenção governamental, crescimento e bem-estar: efeitos da política de equalização das taxas de juros do crédito rural nas regiões brasileiras [Governmental intervention, growth and welfare: effec," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 24(2), pages 363-388, May-Augus.
    • Handle: RePEc:nov:artigo:v:24:y:2014:i:2:p:363-388
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    More about this item

    Keywords

    subsidies; economic growth; welfare; general equilibrium; Brazilian regions;
    All these keywords.

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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