Giving with one hand and taking away with the other

Authors

  • Carlândia Brito Santos Fernandes State University of Maringá
  • Mariana Silva Cunha State University of Maringá
  • Marcos Roberto Vasconcelos State University of Maringá

DOI:

https://doi.org/10.52292/j.estudecon.2019.1199

Keywords:

Fiscal policy, Public spending, Inequality, Brazilian states

Abstract

This study analyses the impact of fiscal policy on income inequality for the Brazilian states, over the period 2004-2014. With system GMM we find robust evidence that while increases in total expenditures have a positive impacton inequality, total revenues have a negative effect, thus the net effects may not be positive. With a particular focus on disaggregated expenditures, we also identify that the negative effects that expenditures related to public debt can generate may overcome the positive effects of social expenditures. Therefore, the discussion on how to determine and qualify social spending levels in Brazil, which are necessary to combat poverty and reduce social and income inequalities, is directly related to the revision of the tax collection system.

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Published

2019-12-20

How to Cite

Fernandes, C. B. S., Cunha, M. S., & Vasconcelos, M. R. (2019). Giving with one hand and taking away with the other. Estudios económicos, 36(73), 43–70. https://doi.org/10.52292/j.estudecon.2019.1199

Issue

Vol. 36 No. 73 (2019)

Section

Articles

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