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

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Author Info
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))

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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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File URL: ftp://www.ceistorvergata.it/repec/rpaper/No-60-Marini-Piergallini-Scaramozzino.pdf
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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
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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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Related research
Keywords: Inflation; Measurement bias;

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Find related papers by JEL classification:
C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions
C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
D14 - Microeconomics - - Household Behavior - - - Personal Finance
E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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  1. Giam Pietro Cipriani & Diego Lubian & Angelo Zago, 2008. "Money Illusion: Are Economists Different?," Economics Bulletin, Economics Bulletin, vol. 1(3), pages 1-9. [Downloadable!]
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This page was last updated on 2009-11-5.


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