Pass-through from exchange rate to prices in Brazil:an analysis using time-varying parameters for the 1980 – 2002 period

The aim of the present paper is to analyze the pass-through from exchange rate to inflation in Brazil from 1980 to 2002. Initially, we developed a model of a profit-maximizing firm based on the pricing-to-market approach presented by FEENSTRA and KENDAL (1997). In order to adapt the model to the Brazilian reality, we considered the following aspects: (i) the firm sells its product both in the domestic market – where it has some pricing power – and in the foreign market – where it is a price-taker; (ii) costs are a function of the exchange rate; (iii) the degree of openness is included in the demand equation. Results show that the Kalman Filter yields better results than linear models with time-invariant parameters and that the inflationary environment and the exchange rate regime perceived by the agents affect the degree of pass-through. We can observe a reduction in the pass-through to consumer price indices (IPCA and IGP-DI) after the implementation of the Real plan, and a more intense reduction after the adoption of the floating exchange rate regime in 1999. These results are in line with other estimates presented in the literature. The pass-through to wholesale prices, however, is relatively constant and its levels are close to one throughout the period. This also seems to be a consistent result if we consider a small (price-taking) economy in the foreign marketexchange rate, pass-through, Kalman filter

Testing Nonlinearities Between Brazilian Exchange Rate and Inflation Volatilities

There are few studies directly addressing exchange rate and inflation volatilities, and lack of consensus among them. However, this kind of study is necessary, especially because they can help monetary authorities to know price behavior better. This article analyses the relation between exchange rate and inflation volatilities using a bivariate GARCH model, and therefore modeling conditional volatilities, fact largely unexplored by the literature. We find a semi-concave relation between those series, and this nonlinearity may explain their apparently disconnection under a floating exchange rate system. The article also shows that traditional tests, with non-conditional volatilities, are not robust.

Influence of solvent on the morphology and photocatalytic properties of ZnS decorated CeO2 nanoparticles

Herein, we report a theoretical and experimental study on the photocatalytic activity of CeO2 ZnS, and ZnS decorated CeO2 nanoparticles prepared by a microwave-assisted solvothermal method. Theoretical models were established to analyze electron transitions primarily at the interface between CeO2 and ZnS. As observed, the particle morphology strongly influenced the photocatalytic degradation of organic dye Rhodamine B. A model was proposed to rationalize the photocatalytic behavior of the prepared decorated systems taking into account different extrinsic and intrinsic defect distributions, including order-disorder effects at interfacial and intra-facial regions, and vacancy concentration. (C) 2014 AIP Publishing LLC.Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (CAPES)Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP