IDEAS home Printed from https://ideas.repec.org/p/lvl/mpiacr/2010-20.html
   My bibliography  Save this paper

The Impacts of Income Transfer Programs on Income Distribution and Poverty in Brazil: An Integrated Microsimulation and Computable General Equilibrium Analysis

Author

Listed:
  • Samir Cury
  • Allexandro Mori Coelho
  • Isabela Callegari

Abstract

A persistent and very high-income inequality is a well known feature of the Brazilian economy. However, from 2001 to 2005 the Gini index presented an unprecedented fall of 4.6 percent combined with significant poverty reduction. Previous studies using partial equilibrium analysis have pointed out the importance of federal government transfer programs in this inequality reduction. The aim of this research is to evaluate the efficiency of the two most important cash transfer programs, “Bolsa Família” and “BPC”, in achieving their purpose of alleviating poverty and reducing the inequality in Brazil’s income distribution using an integrated modeling approach, the CGE-MS model. The simulation results confirm the importance of these programs in reducing inequality from 2003 to 2005. However, the effect on poverty alleviation was not strong. Finally, the methodological approach allows the identification of some important economic facts that were not presented in previous analyses, such as the issue of taxation structure that finances these policies.

Suggested Citation

  • Samir Cury & Allexandro Mori Coelho & Isabela Callegari, 2010. "The Impacts of Income Transfer Programs on Income Distribution and Poverty in Brazil: An Integrated Microsimulation and Computable General Equilibrium Analysis," Working Papers MPIA 2010-20, PEP-MPIA.
  • Handle: RePEc:lvl:mpiacr:2010-20
    as

    Download full text from publisher

    File URL: https://portal.pep-net.org/documents/download/id/16887
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sergio Firpo & Renan Pieri & Euclides Pedroso Jr. & André Portela Souza, 2014. "Evidence of eligibility manipulation for conditional cash transfer programs," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 15(3), pages 243-260.
    2. Arief Anshory Yusuf, 2018. "The direct and indirect effect of cash transfers: the case of Indonesia," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 45(5), pages 793-807, May.
    3. Debowicz, Dario & Golan, Jennifer, 2012. "The impact of Oportunidades on human capital and income distribution: a top-down/bottom-up approach," Conference papers 330252, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Samir Cury & Euclides Pedrozo, 2016. "Cash Transfer Policies, Taxation and the Fall in Inequality in Brazil An Integrated Microsimulation-CGE Analysis [equilibrium model, microsimulation model, Brazil. Classification-JEL: C68, D58, I38," International Journal of Microsimulation, International Microsimulation Association, vol. 9(1), pages 55-85.
    5. Luc Savard & Dorothee Boccanfuso & Jonathan Goyette & Véronique Gosselin & Clovis Tanekou Mangoua, 2014. "An impact analysis of the impact of climate change and adaptation policies on the forestry sector in Quebec. A dyanamic macro-micro framework," EcoMod2014 6787, EcoMod.
    6. Dorothée Boccanfuso & Véronique Gosselin & Jonathan Goyette & Luc Savard & Clovis Tanekou Mangoua, 2014. "An impact analysis of climate change and adaptation policies on the forestry sector in Quebec. A dynamic macro-micro framework," Cahiers de recherche 14-04, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    7. Fanny Moffette & Dorothée Boccanfuso & Patrick Richard & Luc Savard, 2013. "Estimating the Impact of the Québec’s Work Incentive Program on Labour Supply: An Ex Post Microsimulation Analysis," Cahiers de recherche 13-01, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    8. Umar Bambale, Ibrahim & Sanusi Rafindadi, Aliyu & Usman Bello, Adamu, 2022. "Household Welfare And Poverty Impact Of Domestic Revenue Mobilisation Strategies In Nigeria: A Computable General Equilibrium (Cge) Analysis," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 9(2), pages 1-13, June.

    More about this item

    Keywords

    Computable general equilibrium model; microsimulation model; income distribution; cash transfer program; fiscal policy; Brazil;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

    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:lvl:mpiacr:2010-20. 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.

    We have no bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuel Paradis (email available below). General contact details of provider: https://edirc.repec.org/data/cdvlvca.html .

    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.