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Income Transfer as Model of Economic Growth

Author

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  • Costa Junior, Celso Jose
  • Sampaio, Armando Vaz
  • Gonçalves, Flávio de Oliveria

Abstract

This work aims to study the main Brazilian economic growth influenced by an income transfer program. For this purpose, we used the DSGE approach. The estimation of the parameters was performed using the Bayesian methodology and analysis of results was done by impulse response functions. The basic characteristic of this paper is to use two types of consumers: ricardian individuals and non-ricardian individuals. The first agents maximize intertemporally its utility function, while the second type of agents is limited to consume the amount received through income transfer. The results show that implantation this program brings positive returns for the whole economy, except for individuals ricardian.

Suggested Citation

  • Costa Junior, Celso Jose & Sampaio, Armando Vaz & Gonçalves, Flávio de Oliveria, 2012. "Income Transfer as Model of Economic Growth," MPRA Paper 45494, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:45494
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    More about this item

    Keywords

    DSGE Models; Bayesian Estimation; and Income Transfers.;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy

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