SSRN Home Search and Download Papers Browse Abstract and Paper Submission Subscribe to Networks View Briefcase Top Papers Top Authors Top Institutions

 

Abstract

 
 

References (54)

Beta

 


 



Inflation Differentials in the Euro Area and Their Determinants - An Empirical View

Vaclav Zdarek
University of Economics and Management in Prague

Juan Ignacio Aldasoro
M&S Consultores


April 14, 2009

William Davidson Institute Working Paper No. 958

Abstract:     
In this paper, we present evidence on the statistical features of observed dispersion in inflation rates in the Euro area. Our descriptive exercise shows that there is still a remarkable dispersion of HICP inflation rates and most of dispersion originates in the non-traded categories of the HICP. We examine the determinants of inflation differentials in a panel of the states of the Euro area in 1999-2007. The evidence shows that output gaps and a proxy for price level convergence were statistically significant; some determinants that were found significant in previous studies did not have impact on inflation (e.g. exchange rate).

Keywords: inflation differentials, price convergence, exchange rate, panel data

JEL Classifications: C23, E31, F15, F41

Working Paper Series

Date posted: October 15, 2009 ; Last revised: October 28, 2009

Suggested Citation

Zdarek, Vaclav and Aldasoro, Juan Ignacio, Inflation Differentials in the Euro Area and Their Determinants - An Empirical View (April 14, 2009). William Davidson Institute Working Paper No. 958. Available at SSRN: http://ssrn.com/abstract=1488942


Export to: Export Citation What's this?

Contact Information

Vaclav Zdarek (Contact Author)
University of Economics and Management in Prague ( email )
Juan Ignacio Aldasoro
M&S Consultores ( email )
3 de Febrero 2430 1-C
(1428) Buenos Aires United States
Feedback to SSRN (Beta)


Paper statistics
Abstract Views: 40
Downloads: 18
References: 54

© 2010 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright
This page was served by apollo3b in 0.281 seconds.