In this paper we ask if the Cass-Koopmans model can account for the behavior of the Brazilian economy from 1970 to 1998. We divide this period in two subperiods. In the first one, the 70s, the GNP per working age person grew at 5.05% a year. In contrast with GNP per working age person, Total...

This paper aims at contributing to the research agenda on the sources of price stickiness, showing that the adoption of nominal price rigidity may be an optimal firms' reaction to the consumers' behavior, even if firms have no adjustment costs. With regular broadly accepted assumptions on...

In the beginning of the eighties the Brazilian growth rate of per capita GDP fell abruptly. In this paper we ask if this fall can be ex-plained by the behavior of technological progress (measured by Total Factor Productivity or TFP). Our main conclusion is that the behavior of TFP can fairly...

In this paper we study the behavior of aggregate investment in the Brazilian economy from 1970-1998. There are two periods when investment has a big increment in Brazil. The second half of the 70s, when investment grew faster than before mainly due to the increment of public investment...

The uncovered interest parity (UIP) test for Brazil is presented from the standpoint of rational expectations hypothesis. The period is January 1984 to October 1998. The econometric tests validate the UIP just for the sub-period January 1990 to June 1994. The result suggests fail with the UIP in...