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Impact Assessment Of Interregionalgovernment Transfers In Brazil: An Input-Output Approach

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  • CARLOS ANTONIO LUQUE

    (FEA-USP)

  • EDUARDO AMARAL HADDAD

    (FEA-USP)

  • GILBERTO TADEU LIMA

    (FEA-USP)

  • SÉRGIO NARUHIKO SAKURAI

    (USP/FEA-RP)

  • SILVIO M. A. COSTA

    (FEA-USP)

Abstract

Redistributive policies carried out by the central government in Brazil through interregional government transfers is a relevant feature of the Brazilian federal fiscal system. Regional shares of the central government revenues in the poorer regions have been recurrently smaller than the shares of central government expenditures in those regions. Appeal to core-periphery outcomes could be made, as São Paulo, the wealthiest state in the country, concentrated, in 2005, over 40% of total Federal tax revenue, receiving less than 35% of Federal expenditures. These figures suggest an effective redistribution of public funds from the spatial economic core of the economy to the peripheral areas. In this paper we investigate the role interregional transfers play in the redistribution of activities in the country, using an interregional input-output approach. Counterfactual simulations allow us to estimate some costs and benefits, for the core and periphery respectively, from such fiscal mechanisms.

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Bibliographic Info

Paper provided by ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics] in its series Anais do XXXVIII Encontro Nacional de Economia [Proceedings of the 38th Brazilian Economics Meeting] with number 117.

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Date of creation: 2011
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Handle: RePEc:anp:en2010:117

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  1. Richard Bird & Andrey Tarasov, 2002. "Closing the Gap: Fiscal Imbalaces and Intergovernmental Transfers in Developed Federations," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0202, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  2. Chang Woon Nam & Rüdiger Parsche, 2001. "Municipal Finance in Poland, the Slovak Republic, the Czech Republic and Hungary: Institutional Framework and Recent Development," CESifo Working Paper Series 447, CESifo Group Munich.
  3. Nicolaas Groenewold & Alfred Hagger & John Madden, 2003. "Interregional transfers: A political-economy CGE approach," Papers in Regional Science, Springer, vol. 82(4), pages 535-554, November.
  4. Daniel Bergvall & Claire Charbit & Dirk-Jan Kraan & Olaf Merk, 2006. "Intergovernmental Transfers and Decentralised Public Spending," OECD Working Papers on Fiscal Federalism 3, OECD Publishing.
  5. Marta Ferreira Dias & Ricardo Silva, 2004. "Central Government Transfers and Regional Convergence in Portugal," ERSA conference papers ersa04p443, European Regional Science Association.
  6. Shoven,John B. & Whalley,John, 1992. "Applying General Equilibrium," Cambridge Books, Cambridge University Press, number 9780521266550, October.
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Cited by:
  1. Luis Armando Galvis Aponte & Adolfo meisel R., 2010. "Fondo de Compensación Regional: Igualdad de oportunidades para la periferia colombiana," DOCUMENTOS DE TRABAJO SOBRE ECONOMÍA REGIONAL 006634, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL.

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