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Abstract
This study aims to assess the impact of Pronaf on the Brazilian GDP and
on sectoral GDP (services, agricultural and industrial) from the application of quantile
regression with fixed effects for panel data. Given the criticism regarding the distribution of resources, we also evaluate the different results within the regional context, i.e. the different impacts in the five
geographical regions of Brazil (North, Northeast, Midwest, Southeast and South). We use the quantile regression
model with fixed effects to panel database, since the variables used in the analysis provide strong inequality between
municipalities. By observing the response of each quantile, not just from the average, as well as taking into account
the control of fixed effects, the effects of Pronaf on GDP can be better captured. Although the program is national, the
different results between regions suggest that (i) changes and improvements in Pronaf should be conducted properly
to each region and (ii) it is clear the necessity to decentralize resources.