Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/220327 
Year of Publication: 
2019
Series/Report no.: 
Discussion Paper No. 241
Publisher: 
Institute for Applied Economic Research (ipea), Brasília
Abstract: 
This paper builds a small size dynamic stochastic general equilibrium (DSGE) 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.
Subjects: 
DSGE model
fiscal policy
bayesian estimation
Document Type: 
Working Paper

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