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Inflation and Relative Price Variability: Reinstating Parks' Results

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Author Info
Jaramillo, Carlos Felipe
Abstract

This paper revisits Parks' seminal work on the time series relationship between inflation and relative price variability. The results reported show that a significant positive association is obtained allowing for an asymmetrical response of relative prices to episodes of positive and negative inflation. This finding is maintained after excluding oil shock years, extending Park's original sample to 1996, using an alternative data set and allowing for a higher degree of disaggregation.

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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Money, Credit and Banking.

Volume (Year): 31 (1999)
Issue (Month): 3 (August)
Pages: 375-85
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Handle: RePEc:mcb:jmoncb:v:31:y:1999:i:3:p:375-85

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879

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  1. Obasi O. Ukoha, 2007. "Relative Price Variability and Inflation: Evidence from the Agricultural Sector in Nigeria," Research Papers RP_171 Key words: price v, African Economic Research Consortium. [Downloadable!]
  2. Pablo Druck & Alexander Plekhanov & Mario Dehesa, 2007. "Relative Price Stability, Creditor Rights, and Financial Deepening," IMF Working Papers 07/139, International Monetary Fund. [Downloadable!]
  3. Alexander Bick & Dieter Nautz, 2008. "Inflation Thresholds and Relative Price Variability: Evidence from U.S. Cities," International Journal of Central Banking, International Journal of Central Banking, vol. 4(3), pages 61-76, September. [Downloadable!]
  4. Francis Vitek, 2002. "An Empirical Analysis of Dynamic Interrelationships Among Inflation, Inflation Uncertainty, Relative Price Dispersion, and Output Growth," Working Papers 02-39, Bank of Canada. [Downloadable!]
  5. Carlos Usabiaga. & María Ãngeles Caraballo & Carlos Dabús, 2004. "Relative Prices and Inflation: New Evidence from Different Inflationary Contexts," Econometric Society 2004 Latin American Meetings 338, Econometric Society. [Downloadable!]
    Other versions:
  6. Mustafa Caglayan & Alpay Filiztekin & Michael T. Rauh, 2004. "Market Structure, Inflation, and Price Dispersion," Discussion Papers in Economics 04/2, Department of Economics, University of Leicester, revised Jun 2004. [Downloadable!]
    Other versions:
  7. Carlos Felipe Jaramillo & Daniel Cerquera, . "Price Behavior in an Inflationary Environment: Evidence from Supermarket Data," Borradores de Economia 138, Banco de la Republica de Colombia. [Downloadable!]
  8. Scharff, Juliane & Nautz, Dieter, 2006. "Inflation and relative price variability in the euro area: evidence from a panel threshold model," Discussion Paper Series 1: Economic Studies 2006,14, Deutsche Bundesbank, Research Centre. [Downloadable!]
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