Cost of economic fluctuations after the Plano Real

Abstract

In this paper,we calculated the cost of economic fluctuations in Brazil. Using quarterly data from real per capita consumption between the beginning of Plano Real and the third quarter of 2013,we computed the cost of economic fluctuations enabling different parametric forms for the stochastic process of the consumption series. We estimated a cost of economic fluctuations in Brazil in approximately 6,48% of the per capita consumption using the most suitable specification for consumption stochastic process

Keywords

• Economic Fluctuations
• Welfare
• Time-serie