Using interregional Multipliers to Compute the Efficiency-equity Trade-off at the Sub-national level: an Application to a Brazilian State

Carlos Azzoni, Eduardo A. Haddad, Edson P. Domingues and Fernando Perobelli
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Eduardo A. Haddad: Departamento de Economia, Universidade de São Paulo
Edson P. Domingues: Departamento de Economia, Universidade de São Paulo

No 11-2005, TD NEREUS from Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS)

Abstract: The paper uses detailed tax data for a state from the Brazilian federation to estimate interregional multipliers. The model considers sectoral transactions of each region with other regions within the state, with other states in Brazil, and with other countries. Interregional multipliers are calculated, which allow for the estimation of the impacts of each unit of investment on the region and on the state as a whole. Based on those results, the trade-off between the effects of investments in each region on state growth and on regional inequality is computed.

Keywords: Interregional multipliers; efficiency-equity (search for similar items in EconPapers)
JEL-codes: R10 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2005
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