Joanílio Rodolpho Teixeira

Structural change and decisions on investment allocation

In this article the growth models of Feldman (1928) and Mahalanobis (1953) are extended to analyse the implications of the process of structural change on the decisions of investment allocation. By using the device of vertical integration, their constructions are shown to be a particular case of the Pasinetti’s (1981) model of structural change. Their analysis is then carried out in a multi-sector framework, where both productivity and demand change at a particular rate in each of the sectors. A particular rate of investment allocation for each sector is established subject to the full employment of the labour force. Following these lines, we are able to put some of the Halevi’s (1996) descriptive observations into a formal context and within this context to analyse and to extend his ideas about the role of demand on the decisions of investment allocation. Finally, an additional condition is added to the Pasinetti’s model in order to fully characterise the equilibrium path in the most general version of his framework, where capital goods are needed to produce capital goods.

Uncovered interest parity and the peso problem: the Brazilian case

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 the Real Plan, validating the theoretical point proposed by Krasker.

A Pasinettian approach to international economic relations: the pure labor case

In this paper, the pure labor version of Pasinettis model of structural change and economic dynamics is extended to consider international economic relations. The conditions for full employment, full expenditure of national income and trade balance equilibrium are established along with solutions for the systems of physical quantities and prices in an open economy. Analytical results concerning the benefits of international trade and learning are studied with formal rigor. Then static and dynamic aspects of the principle of comparative cost advantages are analyzed considering the determinants of the level of specialization and international prices.

Growth and Stability in a Model with Pasinettian Saving Behaviour and Neoclassical Technology

This paper analyzes a Kaldor-Pasinetti two-class model of growth and distribution in which fiscal activity is explicitly introduced along the lines of L. Pasinetti (1989). Following the approach of W. Darity (1981), the model is reduced to a dynamic system where the Cambridge equation is one of the possible steady-state solutions. The conditions for its local stability are studied and a numerical example is presented. The antidual case is more likely to occur in order to guarantee the local stability of the Cambridge equation. Copyright 1999 by Blackwell Publishers Ltd and The Victoria University of Manchester

A Note on Dalziel’s Model of Long-Run Distributive Equilibrium

Dalziel (1989) pointed out that Fleck and Domenghino (1987), in their own model, did not include Pasinettis criticism of Kaldors model (1955-56). In the same vein, if the government is allowed to save (positively ornegatively), there should be an additional variable, namely Pg (govenmment profits), which can have, in the first instance, any real value. In this note we want to show that Dalziels argument deserves qualification. Let G be the government consumption, T the total amount of indirect taxes, and sg the government saving rate. In this sense, Dalziel defines G as:

The updating of input-output matrices a systematic survey

Abstract This paper systematically surveys the use of different functional specifications for the distance-minimising function in updating input-output matrices of technical coefficients. An alternative proof is given to existence of a solution to the RAS updating technique.

Efeitos das variações cambiais sobre os componentes comerciais da conta corrente no Brasil: 1995-2005

In this paper it is analyzed the influence of the exchange rate movements on Brazils current account from January 1995 to January 2006. The frequency of the data is monthly. The econometric treatment adopted was based on the cointegration analysis. By the application of the Divisia index the effects of the institutional changes on the calculated elasticities were removed. It can be concluded with acceptable certainty that without taking into consideration the institutional changes, the exchange rate variations exerted significant influence on the current account balance in the studied period. The mechanism of correction of error indicated that the unbalances of short term do need a relatively short time to be corrected.

Ricardian Equivalence, Lucas Critic and Exogeneity Tests

This article suggests an alternative approach, nested in exogeneity tests, to test the Ricardian Equivalence Hypothesis. The intuitive appeal and the sophisticated statistical method are the advantages of this new procedure. Furthermore, it is argued against the use of the value of correlation parameter to make any inference about the Ricardian Equivalence Hypothesis.

O CAPITAL HUMANO EM UM MODELO DE CRESCIMENTO ENDÓGENO DA ECONOMIA BRASILEIRA: 1970-1995

Utilizando dados dos estados brasileiros do PIB, populacao economicamente ativa e capital humano, ajustou-se uma funcao de producao aumentada para incluir um termo progresso tecnico, gerando, portanto, um modelo de crescimento endogeno. Os resultados mostram que o capital humano desenvolve um importante papel na determinacao das diferencas interestaduais de renda per capita. Estimou-se depois a relacao entre renda inicial e taxas de crescimento, buscando evidencias sobre a existencia de convergencia das rendas per capita. Esta hipotese foi aceita, apesar de se ter verificado uma baixa velocidade de convergencia.

Mudança estrutural e crescimento econômico no Brasil: uma análise do período 1990-2003 usando a noção de setor verticalmente integrado

The aim of this paper is to examine how the service sectors contribute to labor productivity in the economy as a whole, as well as each of the sectors in particular, using the notion of vertically integrated sector developed by Pasinetti (1973). The studies focused on structural changes and economic growth in Brazil between 1990 and 2003. The results show that service sectors have lower productivity than other sectors, but the difference diminishes when considering total productivity instead of direct productivity. The main reason is the effect induced by increased productivity of other sectors on service sectors.