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Effects of Alternative Policies on Income Redistribution: Evidence from Brazil


  • Vladimir Faria dos Santos
  • Wilson da Cruz Vieira
  • Bricio dos Santos Reis


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. Copyright (c) The Authors 2009. Journal compilation (c) 2009 Overseas Development Institute..

Suggested Citation

  • Vladimir Faria dos Santos & Wilson da Cruz Vieira & Bricio dos Santos Reis, 2009. "Effects of Alternative Policies on Income Redistribution: Evidence from Brazil," Development Policy Review, Overseas Development Institute, vol. 27(5), pages 601-616, September.
  • Handle: RePEc:bla:devpol:v:27:y:2009:i:5:p:601-616

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