Estimating the Employment and GDP Multiplier of Emergency Cash Transfers in Brazil /

We estimate the subnational employment and GDP multiplier of Brazil's 2020 federal cash transfers to vulnerable households. Using two-stage least squares regressions we estimate a formal employment multiplier and then apply an analytical transformation to recover an implied GDP multiplier in th...

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Bibliographic Details
Main Author: Cunha, Daniel
Other Authors: Accioly Perrelli, Roberto, Pereira, Joana, Toscani, Frederik
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2022.
Series:IMF Working Papers; Working Paper ; No. 2022/055
Subjects:
Online Access:Full text available on IMF
Description
Summary:We estimate the subnational employment and GDP multiplier of Brazil's 2020 federal cash transfers to vulnerable households. Using two-stage least squares regressions we estimate a formal employment multiplier and then apply an analytical transformation to recover an implied GDP multiplier in the range of 0.5-1.5. The lower bound of this range lies below most estimates in the literature, which may result from the exceptional constraints imposed by the pandemic on supply chains and consumption. Nevertheless, even using the lower end of our range implies that federal cash transfers played an important role in supporting employment and GDP.
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Physical Description:1 online resource (39 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Access:Electronic access restricted to authorized BRAC University faculty, staff and students