Determinantes de la Inflación en una Economía Dolarizada: El Caso Ecuatoriano
[Determinants of Inflation in a Dollarized Economy: The Case of Ecuador]
AbstractIn this paper we estimate a structural VAR model to identify the causes of inflation in Ecuador. To examine the VAR dynamics, we use the decomposition of the variance because it provides information about the relative importance of each shock to the variables in the VAR. We differ from previous studies because we are able not only to identify the impact of each exogenous variable on the inflation rate but also to estimate the inflation rate from the exogenous variables in the model. We found that on the first quarter of 2008 the annual inflation rate in Ecuador was mainly caused by international prices, exchange rates and public policy.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 17101.
Date of creation: Feb 2008
Date of revision:
Publication status: Published in Cuestiones Economicas 1.24(2008): pp. 5-28
VAR; SVAR; Inflation; Time Series;
Find related papers by JEL classification:
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
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