Investment and Capital Accumulation in Brazil from 1970 to 2000: A Neoclassical View
AbstractIn this paper we study the behavior of aggregate investment in the Brazilian economy from 1970-1998. There are two periods when investment has a big increment in Brazil. The second half of the 70s, when investment grew faster than before mainly due to the increment of public investment (government plus public enterprises). The second is the second half of the 80s. In this second case it goes up mainly as a result of the increment of relative price of capital. This is in clear contradiction with the neoclassical growth model (Cass-Koopmans) since in the 70s as well as in the he 80s the technological progress (measure by the growth rate of TFP) is declining or even getting negative. Once the investment series is adjust for this government behavior as well as the relative price changes, the neoclassical theory is able to fairly describe the investment behavior, hence the Brazilian capital accumulation dynamics during the period under study.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Departamento de Economia da Universidade de Brasilia in its series Working papers - Textos para Discussao do Departamento de Economia da Universidade de Brasilia with number 316.
Length: 27 pages
Date of creation: Jun 2004
Date of revision:
Contact details of provider:
Postal: Universidade de Brasília UnB - Campus Universitário Darcy Ribeiro Asa Norte CEP 70910-900, Brasília, Brasil
Fax: (61) 340-2311
Web page: http://e-groups.unb.br/face/eco/
More information through EDIRC
Other versions of this item:
- Roberto Ellery Jr & Mirta Bugarin & Victor Gomes & Arilton Teixeira, 2003. "Investment and Capital Accumulation in Brazil From 1970 To 2000: a Neoclassical View," Anais do XXXI Encontro Nacional de Economia [Proceedings of the 31th Brazilian Economics Meeting] b20, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Timothy Kehoe & Edward Prescott, 2002.
"Data Appendix to Great Depressions of the Twentieth Century,"
kehoe02, Review of Economic Dynamics.
- Pritchett, Lant, 2000.
"The tyranny of concepts - CUDIE (Cumulated, Depreciated Investment Effort) is NOT capital,"
Policy Research Working Paper Series
2341, The World Bank.
- Pritchett, Lant, 2000. " The Tyranny of Concepts: CUDIE (Cumulated, Depreciated, Investment Effort) Is Not Capital," Journal of Economic Growth, Springer, vol. 5(4), pages 361-84, December.
- Timothy J. Kehoe & Edward C. Prescott (), 2007.
"Great depressions of the twentieth century,"
Federal Reserve Bank of Minneapolis, number 2007gdott.
- Kydland, Finn E & Prescott, Edward C, 1991.
" The Econometrics of the General Equilibrium Approach to Business Cycles,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 93(2), pages 161-78.
- Finn E. Kydland & Edward C. Prescott, 1990. "The econometrics of the general equilibrium approach to business cycles," Staff Report 130, Federal Reserve Bank of Minneapolis.
- Parente Stephen L., 1994. "Technology Adoption, Learning-by-Doing, and Economic Growth," Journal of Economic Theory, Elsevier, vol. 63(2), pages 346-369, August.
- Stephen L. Parente & Edward C. Prescott, 2002. "Barriers to Riches," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262661306.
- Bridgman, Benjamin & Gomes, Victor & Teixeira, Arilton, 2010.
"Threatening to increase productivity,"
33024, University Library of Munich, Germany.
- Victor Gomes & Arilton Teixeira & Benjamin Bridgman, 2008. "The Threat of Competition Enhances Productivity," 2008 Meeting Papers 302, Society for Economic Dynamics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Luciano Póvoa).
If references are entirely missing, you can add them using this form.