Autor: Antonio Antunes

WP 108 Less Inequality, More Welfare? A Structural Quantitative Analysis for Brazil

Abstract – This article studies how the recent fall in wage inequality in Brazil affected individual allocations and welfare. It first documents the evolution of wage inequality in the country between 1996 and 2009. Then, it constructs a parsimonious structural model of the Brazilian economy, which is based on a standard Yaari perpetual youth model in which agents are heterogenous in their skills and on their idiosyncratic labor productivity. The model is calibrated to match, besides other statistics, the skill wage premium, the share of skilled workers in the labor force and the cross sectional variance on unobservable wage inequality in Brazil in 1996 and 2009. Our simulations show that the fall in wage inequality in Brazil from 1996 to 2009 generated an average welfare gain equivalent to a 2.24 percent permanent increase in annual consumption. The gains were distributed unevenly: While welfare gains were large for poor individuals (e.g., about 16 percent in permanent consumption for the first income decile), workers in the top of the income distribution experienced, in general, welfare losses (e.g, a loss of 6 percent in permanent consumption for the last income decile). Using counterfactual exercises we also study the importance of different structural factors which shaped inequality on individual welfare. Download do Paper Ano: 2017 Working-paper: 108 Antonio Antunes Ler todos os Posts de Antonio Antunes Share...

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WP040 – The Effects of Credit Subsidies on Development

ABSTRACT – This paper evaluates the effects of a subsidy on loan interest rates in a general equilibrium model with heterogeneous agents, occupational choice and two financial frictions: a cost to intermediate loans and imperfect enforcement of credit contracts. Occupational choice and firm size are determined endogenously by an agent’s type (ability and net wealth) and the credit market frictions. The credit program subsidizes the interest rate on loans and requires a fixed application cost, which might be null, in the form of bureaucracy and regulations. We show that for the United States, this credit subsidy does not have a signicant effect on output per capita, but it can have important negative effects on wages and government  finances. For Brazil, a developing country in which  financial repression is high and the government subsidies heavily loans, counter-factual exercises show that if all interest subsidies were cut, no significant quantitative e effect would occur on output per capita, wages, inequality or government  finances. The program is largely a transfer from workers to a small group of entrepreneurs. Download do Paper Ano: 2012 Working-paper: 040 Antonio Antunes Ler todos os Posts de Antonio Antunes Share...

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