Impact Assessment of Interregional Government Transfers in Brazil: An Input-Output Approach

Eduardo Haddad, Carlos Luque, Gilberto Lima, Sergio Sakurai and Silvio Costa
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Carlos Luque: Departamento de Economia, Universidade de São Paulo
Sergio Sakurai: Departamento de Economia, Universidade de São Paulo

No 9-2011, TD NEREUS from Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS)

Abstract: Redistributive policies carried out by the central government in Brazil through interregional government transfers is a relevant feature of the Brazilian federal fiscal system. Regional shares of the central government revenues in the poorer regions have been recurrently smaller than the shares of central government expenditures in those regions. Appeal to core-periphery outcomes could be made, as São Paulo, the wealthiest state in the country, concentrated, in 2005, over 40% of total Federal tax revenue, receiving less than 35% of Federal expenditures. These figures suggest an effective redistribution of public funds from the spatial economic core of the economy to the peripheral areas. In this paper we investigate the role interregional transfers play in the redistribution of activities in the country, using an interregional input-output approach. Counterfactual simulations allow us to estimate some costs and benefits, for the core and periphery respectively, from such fiscal mechanisms.

Keywords: Impact assessment; Public economics; Input-output; Brazil (search for similar items in EconPapers)
JEL-codes: R10 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2011
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Related works:
Working Paper: IMPACT ASSESSMENT OF INTERREGIONALGOVERNMENT TRANSFERS IN BRAZIL: AN INPUT-OUTPUT APPROACH (2011)
Working Paper: Impact assessment of interregional government transfers in Brazil: an input-output approach (2011)
Working Paper: Impact Assessment of Interregional Government Transfers in Brazil: An Input-output Approach (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:nereus:2011_009

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