This paper studies models in which hypothesis tests have trivial power, that is, power smaller than size. This testing impossibility, or impossibility type A, arises when any alternative is not distinguishable from the null. We also study settings where it is impossible to have almost surely...

In this paper, an interregional computable general equilibrium model is used to evaluate the impacts of the changing macroeconomic environment of the Brazilian economy on the patterns of regional concentration and structural changes. The Brazilian Multisectoral and Regional/Interregional...

As the process of global integration evolves, developing economies become more and more dependent upon the swings of international markets. Changes in the external environment and economic policy have played a major role in determining the performance of these economies. Terms of trade shocks...

Motivated by both economic and political objectives, Brazil has been pursuing, in recent years, different trade arrangements in an attempt to reinforce strategic impulses for economic development. In this paper, alternative strategies of economic integration are evaluated from the Brazilian...

Tax policy proposals in Brazil usually do not take into account effects at sub-national levels. Even when their spatial consequences are taken into account, the available information and analytical tools are not well suited to produce relevant insights to the policymaker. Thus, sound...

Brazil has undergone deep structural changes in the 1990s with strong implications for the labor markets. The overall decrease in employment levels in Brazil, since the early 1990s, is evident from official statistics. However, the sectoral and regional mapping of this shift has not been...

The relationship between trade and growth has been a familiar topic of discussion in the development literature. More often, the question posed concerns the effects of international trade on economic growth, and thus focuses on trade as an active “agent” of growth. This active role played by...

The purpose of this paper was threefold. First, we presented a flexible analytical framework, based on sound and consistent economic theory and data, in order to assess the likely state/sectoral/income effects of policy changes in Brazil. This is the first fully operational interstate CGE model...

This paper analyzes the interdependence among Brazilian states associated with employment generation by the export sector. Using a unique database — an interstate input-output table for 1996 — employment multipliers are calculated for six different skill groups. Multiplier decomposition...

Tax incentives are common instruments in regional policies used to attract new investments and promote increase in employment and income, but the impact on regional public finances is very controversial. This paper uses an interregional computable general equilibrium model for the Brazilian...