IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Instabilidade e incerteza: curva IS com dados de longo prazo

Listed author(s):
  • Dionísio Dias Carneiro


    (Department of Economics PUC-Rio)

  • Thomas Wu

    (Princeton University)

Registered author(s):

The IS Curve is the tool with which economists evaluate the restrictive impact of the interest rate on the GDP. This paper presents an estimate of the IS Curve for the Brazilian economy that incorporates data since 1980, that is, also covering the high inflation period. Two undesirable consequences require special attention when we consider this larger sample period. First, the switch in the regime might represent different data generating processes (problem known as structural break). Another effect is a change in the statistical precision with which coefficients can be estimated, consequence of the heterogeneity in the variance of the residuals (a problem called heteroskedasticity). Once these potential problems are controlled, this exercise becomes relevant since, as we will show later, empirical analysis that include in their sample period only data after the beginning of the Real Plan (that is, of the stabilized economy) fail to capture the influence of variables of unquestionable theoretical importance. We illustrate this point by analyzing the effect of the external environment on the internal growth, emphasizing the export channel.

If 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.

File URL:
Download Restriction: no

Paper provided by Department of Economics PUC-Rio (Brazil) in its series Textos para discussão with number 476.

in new window

Length: 26 pages
Date of creation: Aug 2003
Handle: RePEc:rio:texdis:476
Contact details of provider: Postal:
Rua Marquês de São Vicente, 225, 22453-900 Rio de Janeiro, RJ

Phone: 021 35271078
Fax: 021 35271084
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:rio:texdis:476. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.