IDEAS home Printed from https://ideas.repec.org/a/ula/econom/v39y2014i38p9-31.html
   My bibliography  Save this article

Determinants of inflation in Venezuela: Markup approach

Author

Listed:
  • José Contreras

    (Oficina de Investigaciones Económicas. BCV. Venezuela.)

  • Nora Guarata

    (Oficina de Investigaciones Económicas. BCV. Venezuela.)

Abstract

The article aims to develop an econometric model that considers elements of short and long term to analyze the behavior of inflation in Venezuela in a theoretical approach of a unit cost model. In the first place, we estimated a long-term relationship or cointegration between the cost structure and the behavior of the general price index. Secondly, a short run model is constructed using the technique of error correction model with the following variables: inflation, internal costs, external costs, inflation inertia, output gap and the impact of the error correction term from the long run equation. In the short run the variable representing the markup influences inflation.

Suggested Citation

  • José Contreras & Nora Guarata, 2014. "Determinants of inflation in Venezuela: Markup approach," Economía, Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela, vol. 39(38), pages 9-31, july-dece.
    • Handle: RePEc:ula:econom:v:39:y:2014:i:38:p:9-31
    as

    Download full text from publisher

    File URL: ftp://iies.faces.ula.ve/Pdf/Revista38/Rev38Contreras.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Markup; inflation; cointegration and error correction model.;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ula:econom:v:39:y:2014:i:38:p:9-31. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alexis Vásquez (email available below). General contact details of provider: https://edirc.repec.org/data/iiulave.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.