Sugar-sweetened beverages tax and obesity: Simulation of economic impacts from input-output analysis for Brazil

Given the growing interest in taxing sugar-sweetened beverages, we estimated effects of tax increase sugary drinks for Brazilian economy, focusing on impact household consumption, production, employment and revenues government. In order to identify these effects, considered productive relations SSB sector by calculating forward backward indices multipliers based input-output matrix Brazil. Additionally, used Leontief price model incorporating disaggregation consumption vector income decile this effect a distributional perspective. The results show applied soft industry generates slight negative but it reaches expected effect: reduction product. analysis shows is clearly progressive over decision, when measured compensatory variation.