The discoveries of oil and gas in the so-called “Pre-Salt layer” have triggered a lot of discussions about their economic effect. In this paper we discuss in detail a less discussed dimension: the impact of Pre-Salt layer in the structure of the Brazilian economy, especially the composition...

The high tax wedge on labor income and the cost for the economic sectors, especially industry, is a significant problem in the Brazilian economy. We use a computable general equilibrium model to project the effects of the exemption of the payroll tax on the economy, with different assumptions...