A model of NAIRU for Brazil

Vol. 20 No. 4 (2000)

Oct-Dec / 2000
Published October 1, 2000
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Portugal, S. Marcelo, and Regina C. Madalozzo. 2000. “A Model of NAIRU for Brazil”. Brazilian Journal of Political Economy 20 (4):387-409. https://doi.org/10.1590/0101-31572000-1534.

A model of NAIRU for Brazil

S. Marcelo Portugal
Professor do Programa de Pós-Graduação em Economia da Universidade Federal do Rio Grande do Sul e pesquisador do CNPq
Regina C. Madalozzo
Doutoranda em economia na Universidade de Illinois, EUA.
Brazilian Journal of Political Economy, Vol. 20 No. 4 (2000), Oct-Dec / 2000, Pages 387-409


In this article we present some estimates for the Non-Accelerating Inflation Rate
of Unemployment (NAIRU) using Brazilian Data. Two different models, Nishizaki (1997)
and Debelle and Laxton (1997), are used. The NAIRU is estimated using both the IBGE and
DIEESE data. The results show a linear Phillips curve for Brazil and allow a good estimate
of the NAIRU. For the IBGE data we obtain a time varying NAIRU while for the DIEESE
data best estimate generates a fixed NAIRU. Our results are in line with the acceleration of
inflation during the eighties and the price stability that follow the Real Plan.

JEL Classification: E24; E31.

Keywords: Nairu inflation unemployment Phillips curve