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The impact of the welfare cash transfer in poor municipalities in Brazil

Author

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  • Ivan Filippini

    (Hochschule für Technik und Wirtschaft (HTW))

Abstract

This article analyzes the impact of welfare transfers upon the economic activity of poor municipalities in Brazil. Short and long-term impacts pointed out in the literature are reviewed and contrasted with an empirical analysis based on 44 poor municipalities in the country. The analysis in the was car-ried out via two different approaches: the GDP approach, in which the con-sumption, investment and government expenditures channels of impact were assessed, taking into consideration the concepts of Marginal Propensity to Consume and the multiplier effect of expenditures; and the formal enterprises and employment approach, in which the dynamics of these two variables were analyzed based on the habits of consumption of poor families in Brazil.

Suggested Citation

  • Ivan Filippini, 2010. "The impact of the welfare cash transfer in poor municipalities in Brazil," Revista de Economia Mackenzie (REM), Mackenzie Presbyterian University, Social and Applied Sciences Center, vol. 8(1), pages 148-170, january-a.
    • Handle: RePEc:aft:journl:v:8:1:2010:jan:apr:p:148-170
    DOI: -
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