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Inflation Bias after the Euro: Evidence from the UK and Italy

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  • Giancarlo Marini

    ()
    (University of Rome II - Faculty of Economics)

  • Alessandro Piergallini

    ()
    (University of Rome II)

  • Pasquale Scaramozzino

    ()
    (University of Rome II - Faculty of Economics
    University of London - School of Oriental and African Studies (SOAS))

Abstract

This paper 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 for a bias in the UK, nor 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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Bibliographic Info

Paper provided by Tor Vergata University, CEIS in its series CEIS Research Paper with number 60.

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Length: 20
Date of creation: 14 Oct 2004
Date of revision:
Handle: RePEc:rtv:ceisrp:60

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Postal: CEIS - Centre for Economic and International Studies - Faculty of Economics - University of Rome "Tor Vergata" - Via Columbia, 2 00133 Roma
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Web: http://www.ceistorvergata.it

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Keywords: Inflation; Measurement bias;

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Cited by:
  1. 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.
  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. 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.
  4. Giam Pietro Cipriani & Angelo Zago & Diego Lubian, 2008. "Money Illusion: Are Economists Different?," Economics Bulletin, AccessEcon, vol. 1(3), pages 1-9.
  5. repec:ebl:ecbull:v:1:y:2008:i:3:p:1-9 is not listed on IDEAS

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