Resumen:
urposeBrazil, a large developing economy whose main exports consist of primary commodities, benefited greatly of the boom in commodity prices during the first decade of the current century. However, with a large share of its population with low and very-low incomes, there is the potential for some negative redistributive effects. We address this issue by simulating the ex-ante effects using a SAM price model.Design/methodology/approachThe methodology consists of two parts. Firstly, using a SAM price model we obtain the elasticities of domestic prices (goods, services, and factors) in response to the increase in international prices of three types of commodities: agricultural, oil/gas, and minerals. Secondly, we run micro-simulations at the household level on welfares effects, as well as on some distributive indices. An analysis at the regional level is also carried out.FindingsFollowing an increase in the international prices of primary commod