Fairness and Redistribution- the Case of Latin American Countries

Following the suggestion of modern egalitarians, the model proposed by Alesina & Angeletos (2005) sets up a fairness rule based on composition of equality, designated by the weights of effort and luck. However, empirical evidence for a set of Latin American countries suggests that, unlike developed countries, these societies do not have a well-established view about the role of merit on economic outcome. Therefore, this paper proposes a theoretical framework based on a new fairness rule, namely the perception that the country does not offer everyone with the same opportunities. The new parameterization leads to a unique and stable equilibrium, characterized by an intermediate level of taxation between the equilibria of the "U.S." and of "Europe".Redistribution,Fairness,Fairness

Fairness and Income Redistribution- an Analysis of the Latin American Tax System

This paper assesses the effects of income redistribution policies on "responsibilit -sensitive" fairness levels in major Latin American countries. In doing so, the following items are analyzed- i) the fairness rule described in Bossert (1995),Konow (1996), and Cappelen & Tungodden (2007) and; ii) the redistribution mechanism (taxation policy) proposed by Ooghe & Peich (2010). The results indicate that taxation does not have a significant effect on Latin American fairness indicators. This behavior can be explained, among other factors, by the fiscal design used, which utilizes high rates associated with the effort variables and fails to equalize unequal opportunities.Theory of Justice,Redistribution,

O impacto da mobilidade de renda sobre o bem-estar econômico no Brasil

Em um estudo recente, Figueiredo e Ziegelmann (2007) apontam para os ganhos de bem-estar oriundos do aumento da mobilidade de renda no Brasil. Entretanto, seus resultados negligenciam um efeito deletério deste fenômeno, qual seja: o aumento da incerteza frente ao consumo futuro. Sob esta perspectiva, este estudo questiona a desejabilidade da mobilidade de renda no Brasil. Consideraram-se índices capazes de separar os seus efeitos negativo e positivo. Em suma, a partir de um cálculo para a aversão ao risco brasileiro, os resultados mostraram que a mobilidade só promoverá um aumento de bem-estar social, caso o parâmetro de aversão à desigualdade seja superior a 2.95.The study of Figueiredo e Ziegelmann (2007) showed that in Brazil there was a gain in welfare related to increasing of income mobility. However, this results did not consider one of the side effects related to this phenomenon: the increase of uncertainty associated to the behavior of consumption. According to this approach, this study questions how desirable is the income mobility in Brazil. It was used an index that separates the negative and positive effects related to mobility. The results showed, considering a coefficient of risk aversion, that an increase of income mobility will have positive effects only if the inequality parameter is superior to 2.95

TESTING ABSOLUTE PPP HYPOTHESIS FOR TWENTY COUNTRIES THROUGH THE SKELETON FROM A SETAR MODEL: SOME NEW EVIDENCE

In this study, the long run PPP hypothesis was tested considering real effective exchange rate dataset for twenty countries provided by the International Monetary Fund (IMF). By focusing on a nonlinear approach, the study tests IMF monthly dataset for specific nonlinearity. Additionally, the study presents a method to estimate the value that real exchange rate may converge in the long run. Linear and nonlinear cases were distinguished by the Hansen’s test. The Self-Exciting Threshold Autoregressive (Setar) model was applied to estimate potential thresholds to indicate the states turning points of the countries competitiveness. Results suggest that real exchange rate for thirteen countries are highly nonlinear and subjected to regime switching. The asymptotic stability analysis guarantees the data stationarity behavior. Absolute PPP hypothesis was supported in five out of thirteen cases. In these few cases the real exchange rate converges to a stable equilibrium not far from the value predicted by the PPP hypothesis.In this study, the long run PPP hypothesis was tested considering real effective exchange rate dataset for twenty countries provided by the International Monetary Fund (IMF). By focusing on a nonlinear approach, the study tests IMF monthly dataset for specific nonlinearity. Additionally, the study presents a method to estimate the value that real exchange rate may converge in the long run. Linear and nonlinear cases were distinguished by the Hansen’s test. The Self-Exciting Threshold Autoregressive (Setar) model was applied to estimate potential thresholds to indicate the states turning points of the countries competitiveness. Results suggest that real exchange rate for thirteen countries are highly nonlinear and subjected to regime switching. The asymptotic stability analysis guarantees the data stationarity behavior. Absolute PPP hypothesis was supported in five out of thirteen cases. In these few cases the real exchange rate converges to a stable equilibrium not far from the value predicted by the PPP hypothesis

Mensurando os níveis de justiça no sistema de redistribuição de renda da América Latina

Este estudo pretende avaliar o impacto das políticas de redistribuição sobre os níveis de justiça responsibility-sensitive dos principais países da América Latina. Para tanto, será adotado o critério teórico de justiça contido em Bossert (1995), Konow (1996) e Cappelen e Tungodden (2007) e um instrumental de mensuração de distância entre distribuições fornecido por Granger et al. (2004). Os resultados indicam que o sistema de tributação não possui impacto significativo sobre os indicadores de injustiça nos países latino-americanos

WHICH CAME FIRST? EGGS AND CHICKEN IN BRAZIL: A NEW STUDY

Almost 42 years ago, Thurman e Fisher (1988), in a funny paper, using the Granger causality test, concluded, with American data that eggs Granger-cause chicken.In 2011, Shikida, Araujo Jr and Figueiredo (2011) replicated the test to Brazilian quarterly data (1987.I-2011.I) and found bi-causality. This article uses Brazilian monthly data (1987.1-2020.9) under three alternative versions of the Granger test: the classical Granger-causality test, the Toda-Yamamoto version of the same test and the nonlinear Granger-causality proposed by Vinod (2020a). We found evidence that, for Brazil, the bi-causality still prevails for eggs and chicken

Crescimento Pró-Pobre no Brasil- Uma Análise Primal e Dual no período de 1987-2007

O presente estudo se propõe a analisar o crescimento pró-pobre no Brasil e suas principais regiões geográficas e estados nos períodos 1987-1993, 1993-1999 e 1999-2007. A metodologia aqui adotada inova na análise na medida em que supera dois problemas comuns na literatura empírica que trata do tema- a) a escolha da linha de pobreza e b) o conjunto de ponderações normativas que diferenciam os pobres dos não pobres (Duclos, 2009). Em outras palavras, o método proposto permite resultados que são robustos sobre as classes de medidas pró-pobres considerando diferentes linhas de pobreza. Os resultados sugerem que o Brasil, principais regiões e estados no período 1987-2007 apresentou crescimento pró-pobre. Os testes indicam que no período 1987-1993 o Brasil, regiões e estados apresentaram crescimento antipobre, exceção para os estados do Ceará e Bahia. No subperíodo 1993-1999 todos os níveis geográficos analisados apresentaram crescimento pró-pobre a única é exceção é o estado da Bahia. O período 1999-2007 notabiliza-se por um forte crescimento pró-pobre para o Brasil e todas as regiões.Pro-poor,Poverty,Inequality

A Hipótese de Kuznets para os Municípios Brasileiros: Testes para as Formas Funcionais e Estimações Não-Paramétricas

The main aim of this paper was to analyse the existence of Kuznets hypothesis for the Brazilian Municipalities from 1991 to 2000. The empirical strategy was based on three steps. The first one consists in testing the quantile specification proposed by Racine (2006). The second was to use the non-parametrical estimation B-splines according to Koenker et alii (1994). Finally, the third step was to test Fan et alii (2001) Likelihood ratio. The results show that the quantile linear specification is inconsistent. The non parametrical estimation confirms the Kuznets hypothesis. The Likelihood ratio proves the goodness to fit of the non parametrical estimations comparing to the linear ones.Hipótese de Kuznets, Municípios Brasileiros, Testes para Especificação, B-Splines, Razão de Verossimilhança