This article investigates the growth and welfare impacts of the Public-Private-Partnership (PPP) policy in Brazil, by means of a recursive model calibrated to the country. The theoretical model assumes two types ofcapital - physical and infrastructure - and the latter may by public or private. Our experiment reproduces the main features of the PPP law, the Law nº 11.079 of December 2004. In the calibration process, we paid special attention to the fraction ofinfras-tructure services supplied for free by the government and to the calculation of tariffs and taxes. Simulations found that the potential impact on growth and welfare are not substantial. Nevertheless, those magnitudes could be magnified depending on the external effect of infrastructure.
