Income transfer and the dynamics of economic growth: a simulation model
DOI:
https://doi.org/10.1590/S0101-41612013000300004Keywords:
income distribution, economics growth, simulationAbstract
The purpose of this paper was to elaborate a theoretical model of simulation in order
to verify the effects of income transference policies over the economic growth dynamic,
following a structuralist approach. The main basis of the simulation is the export-led
growth model, of the Kaldorian type. Five scenarios were drawn considering income
distribution policies, with and without direct income transfer policy by the government.
The scenario that better adjusts the income redistribution with increased rate in the
long-term growth is part of the group “without transference” policy. In the short-term
the major growth rates were obtained in a group scenario “with income transference”.
The main conclusion is that there is a trade-off between the redistribution policies in
such a way that those which are more beneficial to the macroeconomic environment
in the short-term cannot be the best ones in the long-term, and vice versa.
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