Cross-Sectional and Longitudinal Inflation Asymmetries
AbstractThis paper re-examines evidence relating mean inflation to cross- sectional inflation asymmetry, and investigates longitudinal asymmetry in disaggregated price series. The asymmetry test used possesses two important characteristics: it has high power, and it is not dominated by outliers. In contrast to Bryan and Cecchetti (1996), the results here suggest that there does exist significant positive correlation between mean inflation and cross-sectional inflation asymmetry. However, the explanatory power of median inflation is small. Longitudinal inflation asymmetry is evident in almost all the price series investigated here, regardless of frequency. This finding is intriguing, as neither money nor output growth is asymmetric.
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Bibliographic InfoPaper provided by EconWPA in its series Macroeconomics with number 9809018.
Length: 17 pages
Date of creation: 30 Sep 1998
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Note: Type of Document - pdf; prepared on IBM PC; pages: 17; figures: included
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Find related papers by JEL classification:
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
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