nep-lam New Economics Papers
on Central and South America
Issue of 2007‒01‒14
four papers chosen by
Maximo Rossi
Universidad de la Republica

  1. Productive Structure and Income Distribution: the Brazilian Case. By Guilherme Moreira; Leandro De Oliveira Almeida; Joaquim Jose Martins Guilhoto; Carlos Roberto Azzoni
  2. Regional Differences in the Determinants of Investment Decisions of Private Firms in Brazil By Carlos Roberto Azzoni; Aquiles Kalatzis
  3. Estimating Regional Poverty Lines With Scarce Data: An Application to Brazilian Regions By Carlos Roberto Azzoni; Fernando Silveira; Alexandre Iwata; Antonio Ibarra; Bernardo Diniz; Guilherme Moreira
  4. Intergenerational Transmission of Human Capital in Brazil: Differences According to Race and Region By Antonio Carlos Campino; F.M.S. Machado

  1. By: Guilherme Moreira; Leandro De Oliveira Almeida; Joaquim Jose Martins Guilhoto; Carlos Roberto Azzoni
    Abstract: This study deals with the impacts of structural changes on income distribution in Brazil in the period 1992-2002. A Pure Leontief Model and a Leontief-Miazawa Model were utilized to portray the structure of the economy in both years, and to perform counterfactual simulations on some important changes occurring during the period. The methodology allowed for the identification of the high and low inequality sectors in both years, and to their contribution to the increasing inequality during the period. It is interesting to notice that some sectors with low internal inequality ended-up provoking increased global inequality through their interaction pattern with other sectors in the economy,and through the consumption structure. The results also indicate that the change in sectoral shares in the period contributed to diminishing inequality. Therefore, the causes for increasing inequality remains within the distribution of wages within the sectors.
    Date: 2006–08
  2. By: Carlos Roberto Azzoni; Aquiles Kalatzis
    Abstract: This study takes on an important part or regional growth, that is, the investment decisions of private firms. The question asked is: do corporations decide on investments in the same way in different parts of the territory? The paper analyses investments of 482 large Brazilian firms in the period 1996-2004. The role of sales, cash-flow, external financing, and working capital is investigated through regression analysis, following the literature on firm investment decisions. Regional dummies used to capture differences in the role of those determinants indicate that there are significant differences across regions. This is important information for regional development policy, for different mechanisms should be used in different regions in order to foster private investments.
    Date: 2006–08
  3. By: Carlos Roberto Azzoni; Fernando Silveira; Alexandre Iwata; Antonio Ibarra; Bernardo Diniz; Guilherme Moreira
    Abstract: The recent emphasis on fighting poverty in Brazil makes the determination of the size of the targeted population an important issue (What is the right poverty line? What is the real size of the poor population? How much money should be given to each poor family?). The application of poverty lines based on national income levels tends to produce important distortions at the regional level. Using data from a Household Expenditure Survey (HES) that covered some regions in Brazil, the paper develops and applies a methodology to define poverty lines for all regions and urban areas. These lines are based on nutritional requirements, thus avoiding the purchasing power parity problem, and take into account non-monetary income and in-kind consumption, aspects that are very important at the rural level. The HES results are matched with Census data, allowing for the estimation of rural and urban poverty lines for Brazilian regions.
    Date: 2006–08
  4. By: Antonio Carlos Campino; F.M.S. Machado
    Abstract: The main objective of the research is to analyze the relationship between human capital formation, and processes of economic growth and social development by exploring the use of the population's nutritional and health variables to assess the quality of human capital and the mechanisms through which this capital is transmitted between generations among people of different races living in different regions of Brazil. This research includes considerations on recent advances in the economic growth theory that relates health, human capital, and long-term economic growth (see Fogel, R.W. "The Impact of Nutrition on Economic Growth", July/2001.) The evidence is obtained from the analysis of an important Brazilian database, “Pesquisa de Padrão de Vidaâ€, the Brazilian version of the World Bank´s “Living Standard Measurement Surveyâ€, conducted between 1996 and 1997, for the Northeast and Southeast Regions. The model we developed has two phases. In phase one we verified the factors which explain the differences in human capital formation between races, using the region and the area where the person lived as control variables. This part of the study focuses on information pertaining to economically active individuals (people between 19 and 59 years-old, both genders)with the purpose to analyze the connection between individuals' health variables, such as height and health status, and socioeconomic variables, like income and educational attainment, In phase two, the factors that explain the differences in the intergenerational transmission of human capital among races, were determined; area (urban x rural) and region were used as control variables. This part of the study focuses on information pertaining to individuals belonging to the same group, with at least one child to raise (2 to 21 years-old, both genders) in order to evaluate the intergenerational transmission of human capital. Results lead to the conclusion that relevant investments in human capital formation, such as educational attainment, create better opportunities to the individual in terms of employment and income. Beyond these primary effects, however, there are secondary effects, mainly based on the transmission of human capital formation through generations, which result in population lifestyle changes, economic growth and development.
    Date: 2006–08

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