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Summary (2005)
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@MISC{Bento05summary,
author = {Joaquim Bento and Souza Ferreira Filho and Mark Horridge and Thomas W. Hertel and L. Alan and Winters World Bank},
title = {Summary},
year = {2005}
}
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Abstract
This paper addresses the potential effects of the Doha round of trade negotiations upon poverty and income distribution in Brazil, using an applied general equilibrium (AGE) and micro-simulation model of Brazil tailored for income distribution and poverty analysis. Of particular importance is the fact that the Representative Household hypothesis is replaced by a very detailed representation of households. The model distinguishes 10 different labour types, and has 270 different household expenditure patterns. Income can originate from 41 different production activities (which produce 52 commodities), located in 27 different regions inside the country. The AGE model communicates to a micro-simulation model that has 112,055 Brazilian households and 263,938 adults. Economic activity in Brazil, a large country, is spread unevenly across the territory. Manufacturing industries are concentrated in the South-East region, while agriculture, although more evenly distributed geographically, is the main source of income of the Center-West states. Poverty, on the other hand, is a pervasive phenomenon in the country, which has one of the worse income distributions in the world. The poorest states in Brazil (defined based on the share of population below the poverty line) are concentrated in the North-Eastern states.
Keyphrases
micro-simulation model income distribution manufacturing industry worse income distribution north-eastern state different household expenditure pattern economic activity different labour type applied general equilibrium brazilian household different region detailed representation potential effect pervasive phenomenon particular importance poverty line age model large country different production activity center-west state south-east region trade negotiation representative household hypothesis main source doha round poverty analysis
