Formal and informal sectors in a social accounting matrix for Brazil

Abstract

This paper presents a methodology to estimate a Social Accounting Matrix for Brazil in 2006 that separates between formal and informal sectors. The goal of this study is to estimate and to analyze the Social Accounting Matrix for Brazil in 2006. The shares of output by informal and formal sectors are applied as weights to estimate the size of the two sectors. The results reveal important structural linkages between the two sectors and may serve as data input for future Structuralist Calibrated Models.