Record Details

The Revealed Social Welfare Function: USA X Brazil

Brazilian Review of Econometrics

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Title The Revealed Social Welfare Function: USA X Brazil
The Revealed Social Welfare Function: USA X Brazil
 
Creator Mattos, Enlinson
 
Subject Social Welfare Function
Optimal Tax
Pareto Efficiency
Nonparametric Estimation
H20
H21
C14
C15
Social Welfare Function
Optimal Tax
Pareto Efficiency
Nonparametric Estimation
H20
H21
C14
C15
 
Description This paper proposes the use of the optimal nonlinear tax formula to derive the social welfare function of policymakers. In particular, it uses PSID and PNAD for 1990 to estimate the implicit social welfare functions associated with income tax imposition for the USA and Brazil. Under assumptions on the household preferences, the estimations suggest that both U.S. and Brazilian social welfare functions are concave and Paretian, but that only the Brazilian function is utilitarian, i.e., the Brazilian social planner is less inequity-averse than her U.S. counterpart.
This paper proposes the use of the optimal nonlinear tax formula to derive the social welfare function of policymakers. In particular, it uses PSID and PNAD for 1990 to estimate the implicit social welfare functions associated with income tax imposition for the USA and Brazil. Under assumptions on the household preferences, the estimations suggest that both U.S. and Brazilian social welfare functions are concave and Paretian, but that only the Brazilian function is utilitarian, i.e., the Brazilian social planner is less inequity-averse than her U.S. counterpart.
 
Publisher Sociedade Brasileira de Econometria
 
Date 2008-11-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
 
Format application/pdf
application/pdf
 
Identifier http://bibliotecadigital.fgv.br/ojs/index.php/bre/article/view/1509
10.12660/bre.v28n22008.1509
 
Source Brazilian Review of Econometrics; Vol. 28 No. 2 (2008); 133-162
Brazilian Review of Econometrics; v. 28 n. 2 (2008); 133-162
1980-2447
 
Language eng
por
 
Relation http://bibliotecadigital.fgv.br/ojs/index.php/bre/article/view/1509/926
http://bibliotecadigital.fgv.br/ojs/index.php/bre/article/view/1509/927