The aim of this article is to estimate a Bayesian factorial dynamic model for the analysis and forecasting of the Brazilian tax burden (BTB) using monthly data from 1996 to 2007. Twenty taxes are responsible for about 80% of the BTB, each of which with a distinct seasonal pattern The factorial...

We construct a dynamic general equilibrium model, calibrated to the Brazilian economy, in which a fraction of the firms set prices one quarter in advance. The artificial economy simulations generate series consistent with real data and with a typical estimation of a structural...