THE REGIONAL ASYMMETRIES OF EXCHANGE RATE PASS-THROUGH IN BRAZIL
Exchange pass-through (ERPT); Autoregressive Vectors (VAR); Regional Asymmetries.
The objective of this dissertation is to investigate if Exchange rate shocks have asymetric effects when passed on to prices between states in the Northeast and Southeast regions of Brazil. For this, a VAR model was used to obtain impulse response functions and variance decompositions from a sample of 177 observations between 2004 and 2018. As a result, the hypothesis of pass-through asymmetry is confirmed. The structural economic disparities, such as openness to foreign trade, GDP composition, and access to credit, seem to have a influence on the effects of exchange rate shocks.