Effects of Alternative Policies on Income Redistribution: Evidence from Brazil

Despite recent successes, Brazilian income (cash) transfer policies remain controversial, and alternative approaches to income redistribution are being actively considered. This article contributes to this debate, analysing the effects of several alternative policies for income redistribution in the...

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Bibliographic Details
Published in:Development policy review 2009-09, Vol.27 (5), p.601-616
Main Authors: Dos Santos, Vladimir Faria, Da Cruz Vieira, Wilson, Dos Santos Reis, Bricio
Format: Article
Language:English
Subjects:
Agricultural exports & imports
Brazil
Capital transfers
Economic equilibrium models
Economic policy
Export promotion
general equilibrium analysis
Income
Income distribution
Income redistribution
Policy analysis
poverty
Poverty alleviation
Redistributive taxation
Social policy
Studies
Tax policy
Transfers
welfare
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Summary:Despite recent successes, Brazilian income (cash) transfer policies remain controversial, and alternative approaches to income redistribution are being actively considered. This article contributes to this debate, analysing the effects of several alternative policies for income redistribution in the Brazilian economy using a computable general equilibrium model. Simulations were conducted consistent with the following policies: direct transfer of income, reduction of taxes, and incentives to agricultural exports. The results suggest that transfer of income is the most effective in promoting redistribution of income, with a positive impact on the level of welfare of the poorest households.
ISSN:0950-6764
1467-7679
DOI:10.1111/j.1467-7679.2009.00461.x