TITLE:
Economic Impacts of the Vale-Cultura (Culture Voucher): A Computable General Equilibrium Model
AUTHORS:
Gustavo Fernandes Souza, Ana Flávia Machado, Edson Paulo Domingues
KEYWORDS:
Culture, Vale-Cultura, CGE, Impacts, Consumption, Well-Being, Sectoral Analysis
JOURNAL NAME:
Theoretical Economics Letters,
Vol.9 No.5,
June
17,
2019
ABSTRACT: The aim of this study is to analyze the impacts of
the voucher system Vale-Cultura in the Brazilian cultural sector and in the
economy in general. The methodology applied is the Brazilian Recursive Dynamic
General Equilibrium model (BRIDGE). Our simulations found that GDP growth is
driven mainly by the increase in household consumption. There is a positive
variation in welfare, assessed by the equivalent and compensating variations in
income for beneficiaries of the vouchers. Indirect and production taxes are
positively affected because of the various effects on the economy, which partly
makes up for the government transfers to companies via tax waiver. Finally, a
positive growth is projected at the level of activity of cultural sectors and
negative growth in others, showing a reallocation of productive factors.