Tax Reform, Income Distribution and Poverty in Brazil: an Applied General Equilibrium Analysis
This paper analyses the impacts of three different indirect tax policies on the Brazilian economy: reduction of indirect taxes over the main household consumption products: reduction of indirect taxes over the main inputs used in agriculture; and the reduction of indirect taxes over all products in a specific region (Sao Paulo State) in Brazil. The analysis was carried out with the aid of an inter-regional static general equilibrium model of the country that was linked to a micro-simulation model used for poverty and income distribution analysis. The first two simulations showed that the policies have potential to improve income distribution, mainly benefiting the lower income families in the poorest regions. The reduction of indirect taxes over goods and services in Sao Paulo state shows that this state would benefit more compared to the other states, an example of the so called "fiscal war". This policy also points to some regressive effects of the tax policies on income distribution, since it disproportionately benefits the higher income groups located in the Sao Paulo state. The strong fall significant drop in tax collection should be taken as a sign for restraining policy implementation.
|Date of creation:||2007|
|Contact details of provider:|| Postal: Pavillon J.A. De Seve, Québec, Québec, G1V 0A6|
Phone: 1-418-656-2131, ext. 2697
Web page: http://www.pep-net.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hertel, Thomas W. & Mark Horridge, J. & Pearson, K. R., 1992.
"Mending the family tree a reconciliation of the linearization and levels schools of AGE modelling,"
Elsevier, vol. 9(4), pages 385-407, October.
- Thomas W. Hertel & J. Mark Horridge & K. R. Pearson, 1991. "Mending the Family Tree: A Reconciliation of the Linearization and Levels Schools of CGE Modelling," Centre of Policy Studies/IMPACT Centre Working Papers ip-54, Victoria University, Centre of Policy Studies/IMPACT Centre.
- Domingues, Edson P. & Haddad, Eduardo A., 2003. "Política Tributária e Re-localização," Revista Brasileira de Economia - RBE, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 57(4), October.
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:lvl:mpiacr:2007-26. 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: (Manuel Paradis)
If references are entirely missing, you can add them using this form.