IDEAS home Printed from https://ideas.repec.org/a/nov/artigo/v20y2010i2p315-340.html
   My bibliography  Save this article

Mudanças no sistema tributário e no mercado de crédito e seus efeitos sobre a informalidade no Brasil [Changes to the tax system and credit market and their effects on informal work in Brazil]

Author

Listed:
  • Nelson Leitão Paes

    (PIMES/UFPE)

Abstract

In this paper we analyze the impacts of some changes in tax and credit policies on informal business in Brazil. To do this, we use a computable general equilibrium approach. The main findings shows that a reduction in 1% of tax rates on production or on labor income or capital income can reduce the size of the informal sector and the number of informal jobs, without reducing tax revenue. A more accurate result can be obtained with a reduction in the cost of credit instead of using lower tax rates. The most effective policy seems to be the reduction of taxes on production.

Suggested Citation

  • Nelson Leitão Paes, 2010. "Mudanças no sistema tributário e no mercado de crédito e seus efeitos sobre a informalidade no Brasil [Changes to the tax system and credit market and their effects on informal work in Brazil]," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 20(2), pages 315-340, May-Augus.
  • Handle: RePEc:nov:artigo:v:20:y:2010:i:2:p:315-340
    as

    Download full text from publisher

    File URL: http://www.scielo.br/scielo.php?script=sci_pdf&pid=S0103-63512010000200004&lng=en&nrm=iso&tlng=pt
    Download Restriction: no

    File URL: http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0103-63512010000200004&lng=en&nrm=iso&tlng=pt
    Download Restriction: no

    More about this item

    Keywords

    informality; general equilibrium; taxation; credit cost;

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nov:artigo:v:20:y:2010:i:2:p:315-340. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bárbara Freitas Paglioto). General contact details of provider: http://edirc.repec.org/data/fufmgbr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.