The link between education and in?ation is relatively unexplored in the economic literature. In our paper we provide four potential rationales for a positive effect of education on in?ation. First, education increases productivity of consumer search which, in turn, reduces in?ationary pressures. Second, in?ationary surprises with real effects are more likely to be realised against less educated economic agents. Third, consensus around severe antin?ationary policies may depend as well from the level of education. Fourth, more educated individuals are more likely to become net creditors and lobby for lower in?ation rates. Our GMM estimates of a panel VAR system on a sample of 92 countries do not reject this hypothesis showing that education Granger causes in?ation especially in low education, less developed countries.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Did you know? You can include your works in the database easily by uploading them on the Munich Personal RePEc Archive (MPRA) if you do not have access to an institutional RePEc archive.