IDEAS home Printed from https://ideas.repec.org/a/ijm/journl/v3y2010i1p114-117.html
   My bibliography  Save this article

Case Study: Tax reform, income distribution and poverty in Brazil: an applied general equilibrium analysis

Author

Listed:
  • Joaquim B de Souza Ferreira Filho

    (Escola Superior de Agricultura Luiz de Queiroz-ESALQ, University of São Paulo-USP. Dept. Economics, Managment and Sociology. Av. Pádua Dias, 11. Piracicaba, SP, Brazil.)

  • Carliton V dos Santos

    (Universidade Estadual do Oeste do Paraná UNIOESTE. Colegiado de Economia. R. Universitária, 2069; Jd. Universitário. CEP: 85819-110. Cascavel PR, Brazil)

  • Sandra M do Prado Lima

    (Universidade Estadual de Londrina UEL. Universidade Estadual de Londrina. Departamento de Economia. Rodovia Celso Garcia Cid. Pr 445 Km 380. Campus Universitário. Cx. Postal 6001. CEP 86051-990. Londrina PR, Brazil)

Abstract

This case study considers two frequently advocated approaches to reducing indirect taxation in Brazil: reduction in taxes on food; reduction in taxes on intermediate inputs to agriculture. To asses the effects of both on income distribution poverty levels, a bottom-up general equilibrium model of Brazil (TERM-BR) is linked to a microsimulation model. It is shown that one of the favoured policies is more poverty reducing, the other more income inequality reducing. Perhaps even more importantly, the analysis demonstrates that the two policies lead to very different outcomes in terms of inter-state transfers; a major political barrier to reform in a federal state.

Suggested Citation

  • Joaquim B de Souza Ferreira Filho & Carliton V dos Santos & Sandra M do Prado Lima, 2010. "Case Study: Tax reform, income distribution and poverty in Brazil: an applied general equilibrium analysis," International Journal of Microsimulation, International Microsimulation Association, vol. 3(1), pages 114-117.
    • Handle: RePEc:ijm:journl:v:3:y:2010:i:1:p:114-117
    as

    Download full text from publisher

    File URL: http://ima.natsem.canberra.edu.au/IJM/V3_1/IJM_33.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ferreira Filho, Joaquim Bento de Souza & Horridge, Mark Jonathan, 2006. "Economic Integration, Poverty and Regional Inequality in Brazil," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 60(4), February.
    2. Joaquim Bento de Souza Ferreira Filho & Carliton Vieira dos Santos & Sandra Maria do Prado Lima, 2007. "Tax Reform, Income Distribution and Poverty in Brazil: an Applied General Equilibrium Analysis," Working Papers MPIA 2007-26, PEP-MPIA.
    3. Joaquim Bento de Souza Ferreira Filho & Mark Horridge, 2004. "Regional Inequality, Poverty and Economic Integration in Brazil," ERSA conference papers ersa04p181, European Regional Science Association.
    4. Sergei Soares & Fernando Gaiger Silveira & Claudio Hamilton dos Santos & Fábio Monteiro Vaz & André Luis Souza, 2009. "O Potencial Distributivo do Imposto de Rendapessoa Física (IRPF)," Discussion Papers 1433, Instituto de Pesquisa Econômica Aplicada - IPEA.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arief Anshory Yusuf, 2008. "INDONESIA-E3: An Indonesian Applied General Equilibrium Model for Analyzing the Economy, Equity, and the Environment," Working Papers in Economics and Development Studies (WoPEDS) 200804, Department of Economics, Padjadjaran University, revised Sep 2008.
    2. Marie Daumal, 2013. "The Impact of Trade Openness on Regional Inequality: The Cases of India and Brazil," The International Trade Journal, Taylor & Francis Journals, vol. 27(3), pages 243-280, August.
    3. repec:dau:papers:123456789/4295 is not listed on IDEAS
    4. Wim Naudé & Riaan Rossouw, 2011. "Export diversification and economic performance: evidence from Brazil, China, India and South Africa," Economic Change and Restructuring, Springer, vol. 44(1), pages 99-134, April.
    5. Ricardo Arguello C & Daniel Valderrama G. & Sandra Acero W., 2011. "Poverty impacts of agricultural policy adjustments in an opening economy: the case of Colombia," Documentos de Trabajo 8575, Universidad del Rosario.
    6. Arief Anshory Yusuf, 2006. "Constructing Indonesian Social Accounting Matrix for Distributional Analysis in the CGE Modelling Framework," Working Papers in Economics and Development Studies (WoPEDS) 200604, Department of Economics, Padjadjaran University, revised Nov 2006.
    7. Aline Souza Magalhães & Edson Domingues, 2009. "Regional inequality and growth: the role of interregional trade in the Brazilian economy," Textos para Discussão Cedeplar-UFMG td359, Cedeplar, Universidade Federal de Minas Gerais.
    8. Arief Anshory Yusuf & Budy P. Resosudarmo, 2007. "On the Distributional Effect of Carbon Tax in Developing Countries: The Case of Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 200705, Department of Economics, Padjadjaran University, revised Aug 2007.
    9. Cury, Samir & Coelho, Allexandro Mori & Pedrozo, Euclides, 2009. "The Impacts of Income Transfer Programs on Income Distribution and Poverty in Brazil: An Integrated Microsimulation and Computable General Equilibrium Analysis," Conference papers 331846, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. Ole Boysen & Alan Matthews, 2008. "The Impact of Developed Country Agricultural Trade Liberalization on Poverty: A Survey," Working Papers hal-03416399, HAL.
    11. Yusuf, Arief Anshory & Resosudarmo, Budy P., 2007. "Searching for Equitable Energy Price Reform for Indonesia," MPRA Paper 1946, University Library of Munich, Germany.
    12. Hasegawa, Marcos & Guilhoto, Joaquim José Martins, 2006. "Investimento e produtividade dos fatores primários: uma análise de equilíbrio geral aplicado [Investment and productivity of primary factors: a general applied general equilibrium analysis]," MPRA Paper 54555, University Library of Munich, Germany.
    13. David Roodman, 2020. "The impact of life-saving interventions on fertility," Papers 2007.11388, arXiv.org.
    14. Wittwer, Glyn, 2022. "Preparing a multi-country, sub-national CGE model: EuroTERM including Ukraine," Conference papers 333470, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    15. Ricardo Argüello & Daniel Valderrama-Gonzalez, 2015. "Sectoral and poverty impacts of agricultural policy adjustments in Colombia," Agricultural Economics, International Association of Agricultural Economists, vol. 46(2), pages 259-280, March.
    16. Sean Higgins & Claudiney Pereira, 2013. "The effects of Brazil's high taxation and social spending on the distribution of household income," Commitment to Equity (CEQ) Working Paper Series 1307, Tulane University, Department of Economics, revised May 2013.
    17. James Giesecke & Mark Horridge & Katarzyna Zawalinska, 2010. "The regional economic consequences of Less Favoured Area support: a spatial general equilibrium analysis of the Polish LFA program," Centre of Policy Studies/IMPACT Centre Working Papers g-211, Victoria University, Centre of Policy Studies/IMPACT Centre.
    18. Proque, Andressa Lemes & Betarelli Junior, Admir Antonio & Perobelli, Fernando Salgueiro, 2022. "Fuel tax, cross subsidy and transport: Assessing the effects on income and consumption distribution in Brazil," Research in Transportation Economics, Elsevier, vol. 95(C).
    19. Ferreira Filho & Horridge, Mark & Joaquim Bento de Souza, 2009. "Would Trade Liberalization Help the Poor of Brazil?," Agricultural Distortions Working Paper Series 52795, World Bank.
    20. Bouët, Antoine & Estrades, Carmen & Laborde, David, 2012. "Cooperation vs. non cooperation in the multilateral trading system: the impact on poverty and inequality in developing countries," Conference papers 332287, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    21. Bittencourt, Maurício Vaz Lobo & Kraybill, David S. & Larson, Donald W., 2006. "Consequences Of Trade Liberalization On Poverty And Income Distribution In Brazil," 2006 Annual meeting, July 23-26, Long Beach, CA 21128, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    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:ijm:journl:v:3:y:2010:i:1:p:114-117. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jinjing Li (email available below). General contact details of provider: http://www.microsimulation.pub .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.