Assessing the impacts of agricultural policy and structural reforms on income distribution and poverty in Brazil

Producers and households in developing countries are affected by the prices of products involved in international transactions. The impacts of agricultural policy and structural reforms leading to changes in international prices of goods and services are expected to be differentiated across households and producers, depending on how they are involved in the circular flow of goods and services within the country of residence. As such, it might be expected that these reforms will affect income distribution and poverty levels within those countries.The objective of this study is to produce an estimate of the impacts of agricultural policy and structural reforms on income distribution and poverty in Brazil, considering not only the first round (direct) effects but also their spillovers (indirect effects) across the circular flow of income. The introduction of the second and higher round effects is important, for the initial effects could either be mitigated or empowered by the indirect effects.