The estimated interest rate rules are reduced form equations and for that reason they do not directly reveal anything about the structural parameters of monetary policy. In this paper, we seek to further elucidate the Brazilian monetary policy under the inflation targeting regime by calibrating...

The goal of this paper is two-fold. Firstly, this paper shows that the natural rate of interest in a small open economy, with access to the world capital markets, is equal to the international real rate of interest. We show this property by using the infinitely-lived overlapping generations...

When judges are believed to be politically biased, many nasty predictions may derive from it. Economic literature in Brazil shows some controversies over what is the direction of the bias, but mainly, economists believe that courts tend to favor debtors, leading to high disincentives for...

This paper investigates the optimal general income tax and audit policies when poverty is a public bad and income is not observed in an economy with two types of individuals. Dierently from the traditional "non-distortion at the top" result of the optimal taxation literature, we nd that the...

Many local governments allow competition between public and private rms for provision of local public services in order to reduce procurement cost. Competition is usually introduced through competitive tendering for concession contracts. We show that in a symmetric competition between public and...