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CEEAplA Working Paper Series 2009

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http://hdl.handle.net/10400.3/1124

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Browsing CEEAplA Working Paper Series 2009 by Subject "Azores"

Now showing 1 - 3 of 3
  • Dinâmicas de empreendedorismo e microcrédito nos Açores
    Publication . Couto, Gualter; Ponte, João Crispim Borges da
    Este estudo versará a análise de estatísticas nacionais e regionais que nos permitirão tecer algumas considerações relativamente ao perfil do empreendedor utilizador do microcrédito, designado microempreendedor, na Região Autónoma dos Açores, procurando também perceber quais os sectores de maior procura. Os resultados sugerem que os projectos de microcrédito nesta região são principalmente vocacionados para o comércio a retalho e são liderados por indivíduos do sexo masculino residentes na ilha de São Miguel, com uma idade compreendida entre os 25 e os 34 anos de idade, numa situação de desemprego, que terminaram ou frequentaram o ensino secundário.
    2009-05Working paper Open access Show more
  • Measuring the impacts of personal and corporate income tax cuts on a small island open economy
    Publication . Bayar, Ali; Fortuna, Mário; Mohora, Cristina; Opese, Masudi; Sisik, Suat
    In 1999, subsequent to a legislative review, the authorities of the Azores, an autonomous region of Portugal, decided to reduce income tax rates applicable locally by 30% in the case of corporate income and by 20% in the case of personal income. There was no debt or transfer compensation for this tax reduction, meaning that the regional budget was reduced by the equivalent amount of the tax reduction. The current paper analyses the impact of such a shock on various macro and micro variables pertaining to the Azorean economy, including social welfare, using a dynamic CGE model comprising forty five sectors, six household groups, three government levels and four trading partners. It is concluded that the short run impact on GDP is, as expected, negative, given that the marginal propensity to save of the private sector is positive and there was no compensating policy. There is an initial increase in unemployment due to the cut in government expenditures. In the long run, however, the impact becomes positive due to increased investment and private consumption. The stronger effect comes from the reduction in personal income taxes, a much greater proportion of all taxes collected in the region. Real wages net of personal income taxes rise as does the labour supply. The impact of the policy is shown to be positive for all household income groups, as evaluated through equivalent variation. The lowest income group ends up benefiting the most, in relative terms.
    2009-03Working paper Open access Show more
  • Welfare impacts of road construction using a public-private partnership : a CGE analysis of a project
    Publication . Bayar, Ali; Fortuna, Mário; Rege, Sameer
    The Azorean Government embarked on a public-private partnership to build a road on the island of São Miguel, to circumvent the budget restriction imposed by the central government. We build a sequentially dynamic general equilibrium model with 45 sectors to measure the welfare changes arising from the project. The initial investment is amortised over a period and the payments are simulated through an increase in income taxes, reduction in transfer payments or calculating the fall in transport margins. We find that under any type of repayment scheme the welfare benefits do not justify the road construction thus making it a poor investment decision.
    2009-03Working paper Open access Show more