Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/90966 
Year of Publication: 
2011
Series/Report no.: 
Texto para Discussão No. 1656
Publisher: 
Instituto de Pesquisa Econômica Aplicada (IPEA), Brasília
Abstract (Translated): 
Using the tools of Welfare Economics, the study estimates states' weights in the social welfare function of contemporary Brazil. Based on PNAD 2009 microdata, two methods of calculating the weights were applied: the Equally Distributed Equivalent Income (EDEI) and the average marginal utilities (AMU). The weights were calculated for a range of values of 'e', the coefficient of inequality aversion. When 'e' equals 1.43, the regional weights ranged from 0.44 for Santa Catarina to 2.55 for Alagoas (EDEI method). Finally, the paper presents the results of the regional weights technique on the Fundo de Participação dos Estados (States' Participation Fund) taking into account the income inequalities between and within states.
JEL: 
H75
D63
H77
Document Type: 
Working Paper

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