ABSTRACT
The Brazilian Multisectoral And Regional/Interregional Analysis Model (B-MARIA) is the first fully operational interregional computable general equilibrium (CGE) model for Brazil. B-MARIA contains over 200.000 equations, and it is designed for forecasting and policy analysis. Agents' behavior is modeled at the regional level, accommodating variations in the structure of regional economies. The model also identifies a single household in each region, regional governments and one federal government, and a single foreign consumer who trades with each region. Special groups of equations define government finances, accumulation relations, and regional labor markets. B-MARIA is based on the interregional version of the MONASH Model, the MONASH Multiregional Forecasting Model—MONASH–MRF. Given the dimensions of the original specification of B-MARIA, this step had to be applied to solve the model. The high degree of endogeneity of the model, as represented by the relative small number of exogenous variables required in the closure of its complete version, allows for such reduction in size.
