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Optimal foreign borrowing in a multisector dynamic equilibrium model for Brazil

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Show simple item record Tourinho, Octv̀io A. F. en_US
dc.contributor.other Massachusetts Institute of Technology. Center for Energy Policy Research. en_US 2011-01-14T23:24:15Z 2011-01-14T23:24:15Z 1985 en_US
dc.description.abstract This paper shows how a dynamic multisector equilibrium model can be formulated to be able to analyze the optimal borrowing policy of a developing country. It also describes how a non-linear programming model with the proposed features was constructed for Brazil, and discusses the optimal solution of a base case scenario for the economy in the next 20 years. The sensitivity analysis emphasizes the response of the model to different interest rates on foreign borrowing, alternative export expansion and imports requirements scenarios, and different hypothesis with respect to future petroleum prices and domestic petroleum production. The main conclusion is that the optimal long run borrowing policy for Brazil is quite sensitive to the expected future interest rates, and may be different from some myopic strategies which are currently being suggested to handle the developing countries' foreign debt problems. The other important conclusion is that in the less favorable scenarios - protectionist foreign environment or higher petroleum prices - it is not optimal to postpone the required domestic adjustments by increased foreign borrowing. The usefulness of the model is not restricted to this set of simulations, since it can be readily adapted to address related issues such as foreign trade, investment and indirect taxation policies en_US
dc.format.extent 1 v. (various pagings) en_US
dc.publisher [Cambridge, Mass.] : Massachusetts Institute of Technology, Center for Energy Policy Research, Energy Laboratory, 1985 en_US
dc.relation.ispartofseries Energy Laboratory report (Massachusetts Institute of Technology. Energy Laboratory) no. MIT-EL 85-011. en_US
dc.title Optimal foreign borrowing in a multisector dynamic equilibrium model for Brazil en_US
dc.title.alternative Multisector dynamic equilibrium model for Brazil, Optimal foreign borrowing in a. en_US
dc.identifier.oclc 19852720 en_US

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