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Inflation and Productivity: Empirical Evidence from Europe

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  • Efthymios Tsionas

Abstract

The paper investigates the empirical association between inflation and productivity in 15 European countries over the period 1960–97. Modern econometric techniques based on integration and cointegra– tion analysis are used to test for the existence of a long–run relationship between inflation and productivity. Recently developed causality tests for possibly cointegrated VAR models are also applied instead of relying on standard Granger causality tests which are inappropriate in the presence of nonstationary variables.

Suggested Citation

  • Efthymios Tsionas, 2003. "Inflation and Productivity: Empirical Evidence from Europe," Review of International Economics, Wiley Blackwell, vol. 11(1), pages 114-129, February.
    • Handle: RePEc:bla:reviec:v:11:y:2003:i:1:p:114-129
    DOI: 10.1111/1467-9396.00372
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    Cited by:

    1. Roosen, Jutta & Hennessy, David A., 2003. "The Deseasonalization Of Animal Production," 2003 Annual meeting, July 27-30, Montreal, Canada 22068, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Tim Bulman & John Simon, 2003. "Productivity and Inflation," RBA Research Discussion Papers rdp2003-10, Reserve Bank of Australia.
    3. Saten Kumar & Don J. Webber & Geoff Perry, 2012. "Real wages, inflation and labour productivity in Australia," Applied Economics, Taylor & Francis Journals, vol. 44(23), pages 2945-2954, August.

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