An RBC model of the Brazilian economy with stylized fiscal shocks
This paper builds a real business cycle (RBC) model with government, aiming to replicate key features of the Brazilian economy. I first calibrate and then I use Bayesian methods to estimate the model for Brazil, with 20 years of quarterly aggregate data. Contrary to the conventional knowledge, I find mixed evidence on the pro-cyclicality of the fiscal policy in Brazil. Moreover, the results suggest that tax rate changes have been used to counter changes in the level of government indebtedness, however in a small degree if compared to other international evidence.
Saved in:
| Main Author: | |
|---|---|
| Format: | Digital revista |
| Language: | English |
| Published: |
Fundação Getúlio Vargas
2021
|
| Online Access: | http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402021000400622 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|