BREA

The Brazilian Economic Analysis (BREA) is a computable general equilibrium model for Brazil. The model is static and multiregional, which means it represents the Brazilian economic in one specific year, for example, 2009. There are six different regions in the model: South, Southeast, Center-West, North, Northeast and MATOPIBA as shown in the figure below.

Why is that? There are some good reasons to consider a model like that for Brazil:

  1. With a static model is possible to investigate the direct effects and spillovers of a specific policy, i.e., a climate policy or agribusiness credit policy. Policy analysis is isolated from exogenous effects such as economic growth, demand and/or preference changes, productivity gains, etc, i.e., the static model allows isolate completely the direct and spillovers effects;

  2. A multiregional model has a better representation of the heterogeneity of agriculture in different regions in Brazil. For example, the South of Brazil has a tradtional production of rice and livestock, whereas Center-West has a traditional production of soybean and corn. Additionally, the representation of MATOPIBA region is extremely important since is the dynamic region in Brazil in terms of land use change and deforestation.