This paper compare two alternative social politics to reduce poverty and income inequality in Brazil. The first one is a payment of a universal fixed income, called Basic Income Grant (BIG), and the second one is a Negative Income Tax (NIT), pay only to the families with low incomes. For analysis, we use a Computable General Equilibrium Model. The results had shown that the BIG is better that NIT when the costs of administration associated with the NIT is higher than 50%, and that for a cost between 0 and 50% the adopted program goes to depend on the strategy of poverty reduction.
CITATION STYLE
Paes, N. L., & Siqueira, M. L. (2008). Renda Básica da Cidadania versus Imposto de Renda Negativo: O papel dos custos de focalização. Estudos Economicos, 38(3), 583–610. https://doi.org/10.1590/S0101-41612008000300006
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