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Structural impacts of a cash transfer program: an application of a SAM based CGE model for Brazil

Author

Listed:
  • Freire, Debora
  • Domingues, Edson
  • Britto, Gustavo
Abstract
The aim of this study is to introduce a methodology to project impacts of cash transfers programs, which we exemplify through the evaluation of the Bolsa Família Program in a recent period of the Brazilian economy (2009-2015). An original dynamic recursive computable general equilibrium model, modified to consider issues related to income distribution and their impact on households consumption levels as well as on sectoral output was applied. The results suggest that the program also generates income gains for classes which do not receive cash transfers from Government by its indirect effects on labor and capital income, but has effects on labor income inequality decrease and on productive structure. We conclude that cash transfers policies have important impacts over the process of development of the country, even though its effect on growth is small. Keywords: Cash transfer programs; Bolsa Família; Inequality; Consumption; Productive Structure; Computable General Equilibrium. JEL: H53; O15; C60; C68.

Suggested Citation

  • Freire, Debora & Domingues, Edson & Britto, Gustavo, 2018. "Structural impacts of a cash transfer program: an application of a SAM based CGE model for Brazil," Conference papers 332987, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332987
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    References listed on IDEAS

    as
    1. Paul Glewwe & Ana Lucia Kassouf, 2008. "The Impact of the Bolsa Escola/Familia Conditional Cash Transfer Program on Enrollment, Grade Promotion and Drop out Rates in Brazil," Anais do XXXVI Encontro Nacional de Economia [Proceedings of the 36th Brazilian Economics Meeting] 200807211140170, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    2. Fabio Veras Soares & Sergei Soares & Marcelo Medeiros & Rafael Guerreiro Osório, 2006. "Programas de Transferência de Renda no Brasil: impactos sobre a desigualdade," Discussion Papers 1228, Instituto de Pesquisa Econômica Aplicada - IPEA.
    3. repec:bla:devpol:v:24:y:2006:i:5:p:513-536 is not listed on IDEAS
    4. Ana Luiza Neves de Holanda Barbosa & Carlos Henrique L. Corseuil, 2013. "Bolsa Família, Escolha Ocupacional e Informalidade no Brasil," One Pager Portuguese 226, International Policy Centre for Inclusive Growth.
    5. Sudhanshu Handa & Benjamin Davis, 2006. "The Experience of Conditional Cash Transfers in Latin America and the Caribbean," Working Papers 06-07, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    6. Erwin L. Corong & J. Mark Horridge, 2012. "PHILGEM: A SAM-based Computable General Equilibrium Model of the Philippines," Centre of Policy Studies/IMPACT Centre Working Papers g-227, Victoria University, Centre of Policy Studies/IMPACT Centre.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Research Methods/ Statistical Methods;

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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