This paper builds a small size dynamic stochastic general equilibrium (DSGE) model with government, aiming to replicate key features of the Brazilian economy. I first calibrate and then I use Bayesian methods to estimate the model for Brazil, with 20 years of quarterly aggregate data. Contrary...

In this paper I assess empirically the sign of the uncertainty-investment relation in Brazil within a quadratic adjustment cost model. It is shown that these variables are negatively related in the Brazilian economy. The implication is that investment can be enlarged with the adoption of a...