Author(s)

Gustavo Fernandes Souza, Ana Flávia Machado, Edson Paulo Domingues

Centro de Desenvolvimento e Planejamento Regional (CEDEPLAR), Federal University of Minas Gerais, Belo Horizonte, Brazil.

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.

Culture, Vale-Cultura, CGE, Impacts, Consumption, Well-Being, Sectoral Analysis

Fernandes Souza, G. , Machado, A. and Domingues, E. (2019) Economic Impacts of the Vale-Cultura (Culture Voucher): A Computable General Equilibrium Model. Theoretical Economics Letters, 9, 1411-1433. doi: 10.4236/tel.2019.95091.