Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/33838 
Year of Publication: 
2006
Series/Report no.: 
IZA Discussion Papers No. 2114
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
The Brazilian government raises taxes amounting to 35% of GDP and spends more than two thirds of this on social programmes. These shares are in pair with the OECD averages and well in excess of Latin America averages. However, while tax-benefit systems in most OECD countries reduce income disparities very significantly, the Brazilian government has been much less successful in alleviating inequality and poverty. Focussing on taxes and cash transfers, this paper investigates the impact of the government budget on the income distribution in Brazil, and evaluates its efficiency and effectiveness in reducing inequality and poverty. We present BRAHMS, a new tax-benefit microsimulation model for Brazil and illustrate its use by evaluating the impact of policy on economic inequality. It is argued that microsimulation provides a valuable analytical tool for policy makers in emerging and developing countries in particular.
Subjects: 
Brazil
inequality
poverty
redistribution
microsimulation
JEL: 
H22
H23
C81
Document Type: 
Working Paper

Files in This Item:
File
Size
794.71 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.