Detail publikace

Measuring and Explaining Inflation Persistence: Disaggregate Evidence on the Czech Republic

Autor: prof. Roman Horváth Ph.D., Ian Babetskii, Fabrizio Coricelli
Typ: IES Working Papers
Rok: 2007
Číslo: 22
Publikováno v: IES Working Papers 2007/22
Místo vydání: Prague
Klíčová slova: inflation dynamics, persistence, inflation targeting
JEL kódy: D40, E31
Citace: Babetskii, I., Coricelli, F., Horváth, R. (2007). “Measuring and Explaining Inflation Persistence: Disaggregate Evidence on the Czech Republic. ” IES Working Paper 22/2007. IES FSV. Charles University.
Abstrakt: The paper provides an empirical analysis of inflation persistence in the Czech Republic using 412 detailed product-level consumer price indexes underlying the consumer basket over the period from 1994:M1 to 2005:M12. Subject to various sensitivity tests, our results suggest that raw goods and non-durables, followed by services, display smaller inflation persistence than durables and processed goods. Inflation seems to be somewhat less persistent after the adoption of inflation targeting in 1998. There is also evidence for aggregation bias, that is, aggregate inflation is found to be more persistent than the underlying detailed components. Price dispersion, as a proxy for the degree of competition, is found to be negatively related to inflation persistence, suggesting that competition is not conducive to reducing persistence.
Ke stažení: WP 2007_22 Horvath




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