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Inflation bias after the Euro: evidence from the UK and Italy

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  • Giancarlo Marini
  • Alessandro Piergallini
  • Pasquale Scaramozzino

Abstract

This article presents an indirect approach to investigate the possible existence of measurement error bias in the harmonized index of consumer prices for the UK and Italy. Our empirical results show that there is no significant evidence of a bias for the UK or for Italy prior to the introduction of the Euro. Since January 2002, however, the inflation rate in Italy has been underestimated by at least 6 percentage points.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438962
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 39 (2007)
Issue (Month): 4 ()
Pages: 461-470

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Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:461-470

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Cited by:
  1. Raghubir, Priya, 2006. "An information processing review of the subjective value of money and prices," Journal of Business Research, Elsevier, vol. 59(10-11), pages 1053-1062, October.
  2. Guglielmo Maria Caporale & Alessandro Girardi & Marco Ventura, 2011. "The Euro Changeover and Price Adjustments in Italy," CESifo Working Paper Series 3386, CESifo Group Munich.
  3. Giam Pietro Cipriani & Angelo Zago & Diego Lubian, 2008. "Money Illusion: Are Economists Different?," Economics Bulletin, AccessEcon, vol. 1(3), pages 1-9.
  4. repec:ebl:ecbull:v:1:y:2008:i:3:p:1-9 is not listed on IDEAS
  5. Fabrizio Balli & Silvia Tiezzi, 2010. "Equivalence scales, the cost of children and household consumption patterns in Italy," Review of Economics of the Household, Springer, vol. 8(4), pages 527-549, December.

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