TD NEREUS 01-2021
Eduardo Amaral Haddad, Fernando Salgueiro Perobelli, Gustavo Castro, Inácio Fernandes de Araújo, Plinio Esteban Ramirez Alvarez and Raphael Pinto Fernandes
The objective of this document is to introduce the features of two inter-regional models developed for Paraguay. First, the Interregional Input-Output System, estimated for the year 2014 using the method known as Interregional Input-Output Adjustment System (IIOAS). The system considers 18 regions - the 17 departments in Paraguay and the capital city, Asuncíón - whose economies are disaggregated in 33 sectors. To the best of our knowledge, this is the first interregional system that takes into account explicitly the economies of the 18 Paraguayan regions. Second, the BM-PY model, an operational interregional computable general equilibrium model for Paraguay designed for policy analysis. The model is structurally calibrated for 2014; a rather complete data set is available for that year following the estimation of the interregional input-output database, facilitating the choice of the base year. Both models were developed by the Regional and Urban Economics Lab at the University of Sao Paulo - NEREUS, Brazil.