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The Interaction Of Structural Changes With Inflation in the Presence of Symetric and Asymetric Economic Behaviours – Evidence from a General Dynamic Intersectoral Model

Author

Listed:
  • Dospinescu, Andrei Silviu

    (Center for Industrial and Services Economics – INCE- Romanian Academy, Macroeconomic Modelling Center - NIER - Romanian Academy and Hyperion University)

  • Mitrofan, Maria

    (Researcher in Applied Mathematics)

Abstract

The paper analyzes the structural changes–price changes binomial in passing from symmetric to asymmetric economic behaviors. The results are in line with the ones obtained in Dobrescu (2009) indicating that the structural production impulse has a higher impact on inflation than the inflational impulse on the sectorial production structure. The introduction of a behavior change, namely asymmetric wage formation mechanisms at the sectorial level indicate how the elimination of the connection between wages and profits in one of the sectors, leads to changes in the relations between output and prices and in the causal mechanism of output and price formation. Consequantly a change in one behavior carries with it an entire array of modifications due to the spread of the behavior change through the network of interdependencies

Suggested Citation

  • Dospinescu, Andrei Silviu & Mitrofan, Maria, 2013. "The Interaction Of Structural Changes With Inflation in the Presence of Symetric and Asymetric Economic Behaviours – Evidence from a General Dynamic Intersectoral Model," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 87-100, June.
    • Handle: RePEc:rjr:romjef:v::y:2013:i:2:p:87-100
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    References listed on IDEAS

    as
    1. Tobin, James, 1972. "Inflation and Unemployment," American Economic Review, American Economic Association, vol. 62(1), pages 1-18, March.
    2. Dobrescu, Emilian, 2009. "Measuring the Interaction of Structural Changes with Inflation," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 6(5), pages 5-99.
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    More about this item

    Keywords

    general dynamic intersectoral model; symmetric and asymmetric behaviors; structural inflation;
    All these keywords.

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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