Synthesis of the Brazilian economy

BRAZIL ECONOMICS - Report 15 Oct 2018 by Affonso Pastore and Cristina Pinotti

The election results brought at least two surprises in the eyes of press observers, pollsters and political scientists alike: the unprecedented legislative turnover rate – more than half of the Chamber of Deputies and 80% of the Senate (of the 54 seats up for grabs, out of 81 total seats) – and the strong support for Jair Bolsonaro. The bet of the research institutes and many political analysts was that with the campaigns being almost exclusively financed by the Party Fund, which favors large parties, they would use this money to easily reelect their “chieftains”. However, this equation suffered from an omitted variable – voters – who had very different ideas, largely nurtured in social networks.

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