Estimation of the Brazilian Consumer Demand System

Asano, Seki; Fiuza, Eduardo Pedral Sampaio

doi:10.12660/bre.v23n22003.2726

Cited by 11 publications

(11 citation statements)

References 12 publications

(14 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In particular, tax rates on transportation and personal expenses increase substantially as the degree of inequality aversion becomes higher. This result reflects the fact that, according to the Household Expenditure Surveys and to the household expenditure aggregation made by Asano and Fiuza (2001), 8 food and housing together correspond to more than 60% of the expenditure of the poorest household group and falls to nearly 24% for the richer household strata. The shares of all the other categories increase with income.…”

Section: Optimal Commodity Tax Ratesmentioning

confidence: 78%

“…It follows that if βi is negative the ith group is a necessity, and if βi is positive it is a luxury. In the estimation of Asano and Fiuza (2001), the coefficientis negative for food and housing and positive for all the other categories.…”

Section: Aids Demand System and Its Indirect Utility Functionmentioning

confidence: 95%

“…Regarding the econometric specification, the AIDS parameters, used in our indirect utility function, are estimated by Asano and Fiuza (2001) with data from the two waves of POF (1987/88 and 1995/96). The model is augmented with demographic variables, so that the AIDS share equations are ultimately of the following form:…”

Section: Aids Demand System and Its Indirect Utility Functionmentioning

confidence: 99%

“…It compares prices of a national average consumption bundle (based on the 1995/96 survey) both across periods and regions. See more details in Asano and Fiuza (2001). Table 1 presents the optimal tax rates (t i ) derived from the estimates of AIDS demand system for different levels of inequality aversion ( ).…”

Section: Datamentioning

confidence: 99%

“…In fact, our simulations are based on a more recent estimation, made available by Asano and Fiuza (2001). The model used in their estimation is the Almost Ideal Demand System (AIDS), proposed by Deaton and Muellbauer (1980), which allows for a flexible approximation to a general preference structure, thus avoiding the problems just pointed out.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Optimal commodity taxes for Brazil based on AIDS preferences

Asano¹,

Barbosa²,

Fiuza³

2004

Rev. Bras. Econ.

Self Cite

View full text Add to dashboard Cite

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).

show abstract

Section: Optimal Commodity Tax Ratesmentioning

confidence: 78%

Section: Aids Demand System and Its Indirect Utility Functionmentioning

confidence: 95%

Section: Aids Demand System and Its Indirect Utility Functionmentioning

confidence: 99%

Section: Datamentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Optimal commodity taxes for Brazil based on AIDS preferences

Asano¹,

Barbosa²,

Fiuza³

2004

Rev. Bras. Econ.

Self Cite

View full text Add to dashboard Cite

show abstract

The myth of post-reform income stagnation: Evidence from Brazil and Mexico

Filho

Chamon

2012

Journal of Development Economics

View full text Add to dashboard Cite

show abstract

Demand elasticities for food products in Brazil: a two-stage budgeting system

Menezes

Azzoni²,

Silveira

2008

Applied Economics

View full text Add to dashboard Cite

The object of this article is to estimate demand elasticities for a basket of staple food important for providing the caloric needs of Brazilian households. These elasticities are useful in the measurement of the impact of structural reforms on poverty. A two-stage demand system was constructed, based on data from Household Expenditure Surveys (POF) produced by IBGE (The Brazilian Bureau of Statistics) in 1987/88 and 1995/96. We have used panel data to estimate the model, and have calculated income, own-price, and cross-price elasticities for eight groups of goods and services and, in the second stage, for 11 sub groups of staple food products. We estimated those elasticities for the whole sample of consumers and for two income groups.

show abstract

Estimation of the Brazilian Consumer Demand System

Cited by 11 publications

References 12 publications

Optimal commodity taxes for Brazil based on AIDS preferences

Optimal commodity taxes for Brazil based on AIDS preferences

The myth of post-reform income stagnation: Evidence from Brazil and Mexico

Demand elasticities for food products in Brazil: a two-stage budgeting system

Contact Info

Product

Resources

About