The impact of the welfare cash transfer in poor municipalities in Brazil

Ivan Filippini ()
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Ivan Filippini: Hochschule für Technik und Wirtschaft (HTW)

Revista de Economia Mackenzie (REM), 2010, vol. 8, issue 1, 148-170

Abstract: This article analyzes the impact of welfare transfers upon the economic activity of poor municipalities in Brazil. Short and long-term impacts pointed out in the literature are reviewed and contrasted with an empirical analysis based on 44 poor municipalities in the country. The analysis in the was car-ried out via two different approaches: the GDP approach, in which the con-sumption, investment and government expenditures channels of impact were assessed, taking into consideration the concepts of Marginal Propensity to Consume and the multiplier effect of expenditures; and the formal enterprises and employment approach, in which the dynamics of these two variables were analyzed based on the habits of consumption of poor families in Brazil.

Keywords: Income distribution; Poverty; Economic growth. (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:aft:journl:v:8:1:2010:jan:apr:p:148-170

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