nep-lam New Economics Papers
on Central and South America
Issue of 2018‒06‒18
three papers chosen by

  1. Elite taxation, rent-seeking and income inequality in Brazil By Marc Morgan
  2. A history of inequality: top incomes in Brazil, 1926?2015 By Pedro H. G. Ferreira de Souza
  3. Police and Crime: Further Evidence from a Quasi-Natural Experiment By Vicente Cardoso; Marcelo Resende

  1. By: Marc Morgan (IPC-IG)
    Abstract: "Brazil is a notable case of high fiscal income inequality coexisting with a weak regulatory personal income tax. These findings are a clear reflection of the separation of incomes in the country for fiscal purposes. As one moves up in the pre-tax fiscal income distribution, it is the sources of income received that matter most for the individual tax burden (Morgan, 2017). And such a fiscal separation of income can have a positive feedback on pre-tax income inequality. Figure 1 shows the different average effective tax rates applying on different categories of income in Brazil in 2015". (...)
    Keywords: Elite, taxation, rent-seeking, income, inequality, Brazil
    Date: 2018–02
  2. By: Pedro H. G. Ferreira de Souza (IPC-IG)
    Abstract: "Brazil has undergone massive structural change since the mid-1920s. The country has become predominantly urban, gross domestic product (GDP) per capita has increased twelvefold, and educational levels have risen substantially. Yet the concentration of income at the top has remained very high throughout the whole period. Unlike the rosy predictions of modernisation theorists, there has been no clear secular trend towards a more egalitarian society". (...)
    Keywords: history, inequality, top, incomes, Brazil, 1926, 2015
    Date: 2018–04
  3. By: Vicente Cardoso; Marcelo Resende
    Abstract: The paper investigates the effect of police presence on homicides at the municipality level in Brazil during the January 2010 to December 2014 period. For this purpose, occasional and illegal police strikes are considered as relevant shocks in a quasi-natural experiment. After controlling for different variables that explain heterogeneity across municipalities, it is possible to identify a sizeable effect accruing from police strikes on the occurrence of homicides. Despite a conservative analysis that involves temporal and spatial aggregation of variables, the evidence indicates that police strikes lead, on average, to a 16% increase in the homicide rate if one considers a broader sample of 3597 municipalities. The focus of the analysis for a large and heterogeneous country also partially may mitigate concerns for external validity that had been raised in the context of previous studies in the related literature.
    Keywords: police strikes, crime
    JEL: C23
    Date: 2018

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