Ricardo Batista Politi

Ad-valorem tax incidence and after-tax price adjustments: evidence from Brazilian basic basket food

Recent empirical work on tax incidence suggests that after‐tax price responses are independent of the tax change direction. This paper investigates asymmetric price responses to ad‐valorem tax changes in the Brazilian food market for 10 goods in 16 states during the period 1994–2008. Our results suggest that when tax rates increase, tax full shifting occurs for 2 of the 10 goods and tax overshifting occurs for one of the 10 goods; the price response to tax cuts is an undershifting for all goods. Moreover, this last result is similar to our estimation of (average) tax incidence (undershifting). We also investigate the short‐term and long‐term relationships between prices and VAT rate parameters and find that prices seem to respond to tax shocks within four months. (Des travaux recents sur l’incidence de la taxe suggerent que les ajustements de prix en reponse a cette taxe sont independants de la direction du changement de taxe. Ce memoire analyse les reponses asymetriques des prix a des changements de taxes ad valorem dans le marche des aliments au Bresil – dix produits dans seize etats au cours de la periode 1994–2008. Les resultats suggerent que quand les taux de la taxe s’accroissent, il y a plein ajustement des prix dans le cas de deux produits sur dix, et ajustement excedentaire pour un des dix produits; la reponse des prix a une baisse de la taxe est un ajustement moins que proportionnel dans les prix de tous les biens. De plus, ce dernier resultat est semblable a notre estimation (en moyenne) de l’incidence de la taxe (moins que proportionnelle). On examine aussi les relations a court et a long terme entre les prix et les parametres du taux de la TVA : il semble que les prix repondent aux chocs des changements de taxe dans les quatre mois.)

Ad‐Valorem Tax Incidence and After‐Tax Price Adjustments: Evidence from Brazilian Basic Basket Food (Incidence D’Une Taxe Ad Valorem Et Ajustements Des Prix Après Taxes: Résultats Pour Un Panier D’Aliments De Base AU Brésil)

Recent empirical work on tax incidence suggests that after‐tax price responses are independent of the tax change direction. This paper investigates asymmetric price responses to ad‐valorem tax changes in the Brazilian food market for 10 goods in 16 states during the period 1994–2008. Our results suggest that when tax rates increase, tax full shifting occurs for 2 of the 10 goods and tax overshifting occurs for one of the 10 goods; the price response to tax cuts is an undershifting for all goods. Moreover, this last result is similar to our estimation of (average) tax incidence (undershifting). We also investigate the short‐term and long‐term relationships between prices and VAT rate parameters and find that prices seem to respond to tax shocks within four months. (Des travaux recents sur l’incidence de la taxe suggerent que les ajustements de prix en reponse a cette taxe sont independants de la direction du changement de taxe. Ce memoire analyse les reponses asymetriques des prix a des changements de taxes ad valorem dans le marche des aliments au Bresil – dix produits dans seize etats au cours de la periode 1994–2008. Les resultats suggerent que quand les taux de la taxe s’accroissent, il y a plein ajustement des prix dans le cas de deux produits sur dix, et ajustement excedentaire pour un des dix produits; la reponse des prix a une baisse de la taxe est un ajustement moins que proportionnel dans les prix de tous les biens. De plus, ce dernier resultat est semblable a notre estimation (en moyenne) de l’incidence de la taxe (moins que proportionnelle). On examine aussi les relations a court et a long terme entre les prix et les parametres du taux de la TVA : il semble que les prix repondent aux chocs des changements de taxe dans les quatre mois.)

TRANSFERS AND MARGINAL COST OF PUBLIC FUNDING: EMPIRICAL EVIDENCE FOR LOCAL GOVERNMENTS IN BRAZIL

This paper documents empirical evidence on price-effect caused by lumpsum grants for local governments in Brazil between 2006 to 2010. Dahlby (2011) demonstrates theoretically that lump-sum grants can reduce the cost of public goods provision (price-effect), in addition to the traditional income effect. Our contributions are threefold. First we estimated semielasticity of the effects of tax rate changes on tax base (−0.016). Second, we calculate the MCF of the local tax imposed on the supply of services (ISS) for Brazilian municipalities (average of 0.04). Finally, we estimate the priceeffect estimation for ISS tax. Our results suggests that for the entire sample, that an increase in R

Grants and dispersion of local education spending in Brazil

1.00 in per capita unconditional transfers reduces the local price effect (MCF) around 0.07%, but this result is not consistently estimated across all subsamples.

Wages, Informality, and Net Fiscal Benefit in a Federation: Evaluating Intergovernmental Grants in Brazilian Municipalities

ABSTRACT Grants and dispersion of local education spending in Brazil. Regional Studies. Since several federations rely on a decentralized system of public education, understanding local responses to intergovernmental grants is a relevant issue in regional economics. This paper investigates whether different types of grants (block, categorical and matching) increase the dispersion of education spending and impact spending inequalities across Brazilian municipalities from 2004 to 2010. The results suggest that in a decentralized fiscal system public funding based on block grants, unlike funding from categorical grants, favours differences in tastes and leads to a higher dispersion of public provision across jurisdictions. Matching grants do not produce a consistent effect on dispersion.

Fiscalização no mercado de trabalho e informalidade nos municípios brasileiros

We estimate the net fiscal benefit (NFB) and the fiscal effect of unconditional grants on wages for twenty-six Brazilian states in the period 2005 to 2009. In particular, we explore the analytical framework proposed in Albouy to investigate the efficiency and equity effects of unconditional intergovernmental grants in Brazil. This framework can be understood as a positive exercise to comprehend whether grants mitigate the NFB differences across localities and whether they promote equalization in certain criteria. We explore labor market characteristics such as minimum wage and informality to evaluate efficiency and equity in grant distribution. According to our estimates, workers moving to more productive areas would obtain, on average, Brazilian Reais (BRL

Uma nota sobre estimativas de carga fiscal e incidência de ICMS usando dados em painel

) 0.52 less per year in NFBs on their earnings. Results suggest that unconditional grant policy in Brazil is associated with inefficiency because higher-paying areas with larger shares of formal jobs in metropolitan regions are negative recipients of grants.

Desigualdade na utilização de serviços de saúde entre adultos: uma análise dos fatores de concentração da demanda

Desde a decada de 90 o governo tem desenvolvido diversas acoes de fiscalizacao do mercado de trabalho no Brasil. Este trabalho visa investigar os efeitos da fiscalizacao sobre a informalidade nos municipios brasileiros. Para isso, e utilizado um banco de dados com informacoes sobre estabelecimentos fiscalizados pelas equipes da Secretaria de Inspecao do Trabalho (SIT) em 786 municipios do pais para o periodo de 1996 a 1999. Adicionalmente, a abordagem metodologica considera o fato da escolha das firmas fiscalizadas depender do modo de opercao dos fiscais. A decisao de fiscalizacao depende de fatores geograficos, como distância e densidade economica, alem da disponibilidade do numero de fiscais por microrregiao do pais. Os resultados, obtidos por meio de uma abordagem de variavel instrumental, apontam para um efeito negativo e significante da fiscalizacao sobre o contingente de trabalhadores informais nesses municipios.

Competição vertical e horizontal no Brasil : uma análise empírica das interações fiscais nos mercados de cigarro e gasolina

The main purpose of this note is to estimate the tax burden of 12 commodities in Brazil. We collect data of tax rate changes on value added tax (VAT) and tax inclusive prices. Based on this data, econometric methodology is applied based on Carbonnier (2007) to the Brazilian market. Unbalanced panel data includes information about 7 commodities from basic basket food in 16 cities and about 5 other commodities in 11 cities from July 1994 to June 2008. Estimated results suggest that tax burden on consumer relies on between 7% and 75% to these commodities and the firms hold a share of the tax burden on VAT. These findings suggest that sales tax rate changes affect commodities prices in different magnitudes (in this case they are under-shifted).