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The determinants of unemployment in Brazil and Mexico

Author

Listed:
  • Carlos Henrique Rocha

    (UCB)

  • José Angelo C. A. Divino

    (UCB)

Abstract

This paper examines the relationship amongst unemployment and interest rates, taxes on household expenditures and exchange rates for Brazil and Mexico. The theoretical framework is based on concepts or corporate finance and firm's profit-maximizing choice. The empirical analysis is derived from autoregressive distributed lag models (ADL). The estimated results indicate that unemployment is positively related to interest rates and negatively associated to taxes on consumption for both countries. Exchange rates, however, seem to be negatively associated with unemployment in Mexico and positively related with unemployment in Brazil.

Suggested Citation

  • Carlos Henrique Rocha & José Angelo C. A. Divino, 2002. "The determinants of unemployment in Brazil and Mexico," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 3(2), pages 303-315, July-Dece.
  • Handle: RePEc:anp:econom:v:3:y:2002:i:2:p:303-315
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    Citations

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    Cited by:

    1. Shadi Saraireh, 2020. "The Impact of Government Expenditures on Unemployment: A Case Study of Jordan," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 8(3), pages 189-203, September.

    More about this item

    Keywords

    unemployment; real interest rate; exchange rate; taxes on consumption;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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