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Impact assessment of interregional government transfers in Brazil: an input-output approach

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  • Luque, Carlos A.
  • Haddad, Eduardo A.
  • Lima, Gilberto T.
  • Sakurai, Sergio N.
  • Costa, Silvio M.

Abstract

Redistributive policies carried out by the central government 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 a redistribution of public funds from the spatial economic core of the economy to the peripheral areas. This paper investigates 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.

Suggested Citation

  • Luque, Carlos A. & Haddad, Eduardo A. & Lima, Gilberto T. & Sakurai, Sergio N. & Costa, Silvio M., 2011. "Impact assessment of interregional government transfers in Brazil: an input-output approach," MPRA Paper 31292, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:31292
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    References listed on IDEAS

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    1. Daniel Bergvall & Claire Charbit & Dirk-Jan Kraan & Olaf Merk, 2006. "Intergovernmental Transfers and Decentralised Public Spending," OECD Journal on Budgeting, OECD Publishing, vol. 5(4), pages 111-158.
    2. Nicolaas Groenewold & Alfred Hagger & John Madden, 2003. "Interregional transfers: A political-economy CGE approach," Economics of Governance, Springer, vol. 82(4), pages 535-554, November.
    3. Marta Ferreira Dias & Ricardo Silva, 2004. "Central Government Transfers and Regional Convergence in Portugal," ERSA conference papers ersa04p443, European Regional Science Association.
    4. Chang Woon Nam & Rüdiger Parsche & Bettina Reichl, 2001. "Municipal finance and governance in Poland, the Slovak Republic, the Czech Republic, and Hungary," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 2.
    5. Shoven,John B. & Whalley,John, 1992. "Applying General Equilibrium," Cambridge Books, Cambridge University Press, number 9780521266550.
    6. 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.
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    Cited by:

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    2. 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 y Urbana 6634, Banco de la República, Economía Regional.

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    More about this item

    Keywords

    Interregional government transfers; input-output analysis; impact analysis; Brazilian economy;
    All these keywords.

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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