A computable general equilibrium model to analyze distributive aspects in Brazil with a trade policy illustration

Resumo

This paper presents a Computable General Equilibrium model specified to simulate the policy impacts on income distribution in Brazil, with complex and systemic propagation methods. To capture the distributive impacts, the model adopts a design focused on the separation of production and institutional factors, as labor and households. The model has three blocks: product and factor markets, and a block that handles with income transfers among institutions. The labor market specification incorporates a recent theoretical advance that allows the determination of involuntary unemployment in the equilibrium. The third block specifies the distribution of the value added among production factors and the redistribution of income among agents/institutions. The simulations of a partial economic "closure" show modest welfare reduction for most workers and families. Also, we checked that the homogeneity property of the model holds only with full indexation of all income transfers, which has important implications for the income distribution process modeling.

Ficha do documento

Tipo

Artigo científico

Ano

2005

Instituição

Universidade de São Paulo. Faculdade de Economia, Administração, Contabilidade e Atuária

Fonte

Estudos Econômicos

Idioma

Inglês

Acesso

Não informado

DOI

10.1590/S0101-41612005000400006

Identificador

oai:revistas.usp.br:article/35859

Licença

http://creativecommons.org/licenses/by-nc/4.0

Temas

Modelagem Econômica

Palavras-chave

Brazilcomputable general equilibrium modelwelfarehomogeneityexternal economic policy evaluationBrasilmodelo de equilíbrio geral computávelbem-estarhomogeneidadeavaliação de política econômica externa