Labor productivity, and structural change in a three sector S.C.G.E (Structuralist Computable General Equilibrium) model: an application to Brazil

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Please cite the paper as:
&lquo;Henrique Morrone, (2014), Labor productivity, and structural change in a three sector S.C.G.E (Structuralist Computable General Equilibrium) model: an application to Brazil, World Economics Association (WEA) Conferences, No. 1 2014, Is a more inclusive and sustainable development possible in Brazil?, 5th May to 12th August 2014&rquo;

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Abstract

This paper presents a three sector (formal, informal, and energy) open-economy model that describes the schematic behavior of the Brazilian economy. The model distinguishes among three economic classes and assumes no financial sector. Formal and energy sectors are demand–constrained; the informal sector is supply– constrained. We intend to examine the linkages and bottlenecks among these sectors. Specifically, we compare the medium-run effects of three experiments: an investment shock, a rise in income transfers toward formal workers, and an exchange rate shock, and discuss them in the context of Brazil. Further, we assess the interrelations among the formal, the informal, and the energy–provider sectors along the cumulative process of growth.


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