In this study we estimate the Brazilian consumer demand system through
family expenditure data, which cover all consumption categories. The model
is estimated from family-level expenditures on seven consumption categories,
and a new set of regional cost-of-living indexes. The sources for
expenditures are the national household expenditure surveys (POFs) conducted
in 1987/88 and 1995/96, which collected data from eleven metropolitan areas.
To the best of our knowledge this is the first study of this type and extent
based on both waves of POF. Corresponding price indexes were constructed
from detailed commodity prices, also from each metropolitan area. The
salient features of our study are 1) price variations come from both time
and regional differences, which allows us to estimate price elasticities
with high precision, 2) we have large variations in income (total
expenditures), which is rarely available in aggregate data, and 3) we
control for time specific factors by exploiting the panel structure of the
data set.
Summary: 1. Introduction; 2. The model; 3. Data; 4. Results; 5. Conclusion.Keywords: optimal commodity taxation; social welfare function; efficiency; equity; almost ideal demand system. JEL codes: H21; D12; D31; D63; H31; C33.In this study we calculate optimal commodity taxes for Brazil. Simulations are based on the Almost Ideal Demand System (Deaton and Muellbauer, 1980), estimated using Brazilian household data. The trade off between equity and efficiency is taken into account by introducing a government aversion to inequality parameter into a social welfare function, which is maximized subject to a balanced government budget requirement.Our results show that the optimal commodity tax structure is characterized by selective tax rates when the only tax policy instrument available is commodity taxation. We extend the analysis by allowing for a uniform poll payment to be made by the government. In this case tax rates are regressive and poll transfer levels are unreasonably high. When we cap transfers with a binding ceiling the former pattern is restored. Comparing with Siqueira (1998), we have also observed a relative robustness of optimal tax rates to household preferences forms.O presente estudo tem como objetivo calcular a estruturaótima da tributação sobre o consumo no Brasil. As simulações baseiamse no sistema de demanda Almost Ideal Demand System (Deaton and Muellbauer, 1980) trade off entre eqüidade e eficiênciaé incorporado no modelo com a introdução de um coeficiente de aversãoà desigualdade social na função de bem-estar social, sujeitaà restrição de receita do governo. Além da hipótese de que oúnico instrumento de política tributária disponível seja a tributação sobre o consumo, nosso modelo também admite a concessão de uma transferência uniforme lump sum de renda per capita do governo para todos os agentes econômicos.Os resultados mostram que a estrutura tributária sobre o consumo caracteriza-se pela seletividade das alíquotas, que se torna mais significativa para valores altos do parâmetro de aversãoà desigualdade. Este resultadoé revertido para uma estrutura tributária regressiva com a introdução de uma transferência uniforme lump sum de renda do governo para todos os agentes no modelo. Quando tetos bastante restritivos são impostos aos valores das transferências, o primeiro resultadoé restabelecido. Com relaçãoà forma escolhida da preferência do consumidor, nossos resultados também mostram relativa robustez com os obtidos em Siqueira (1998).
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