Anticipating Future Expected Utility and Coordination Motives for Information Decisions in Networks
This paper investigates empirically the relationship between inflation, inflation volatility and output growth in the case of México using monthly data over the period 1993-2011. Specifically a bivariate GARCH-M model is estimated to test the hypotheses that inflation rates are directly related to inflation volatility, and that inflation volatility affects negatively output growth. It is found that higher inflation rates are associated to higher inflation volatility which in turn affects negatively output growth. These results suggest that policies aimed to reduce inflation could have beneficial effects on growth through the specific channel of reducing inflation volatility.
|Date of creation:||Sep 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Carretera México Toluca 3655 Lomas Sta. Fe, México D.F.|
Phone: 01 800 021 2433
Web page: http://www.cide.edu/divisiones-academicas/economia/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David P. Myatt & Chris Wallace, 2009.
"Endogenous Information Acquisition in Coordination Games,"
Economics Series Working Papers
445, University of Oxford, Department of Economics.
- repec:oup:restud:v:77:y:2010:i:3:p:1072-1099 is not listed on IDEAS
- Jeanne Hagenbach & Frédéric Koessler, 2009.
"Strategic Communication Networks,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
- Jeanne Hagenbach & Frédéric Koessler, 2008. "Strategic communication networks," PSE Working Papers halshs-00586847, HAL.
- Jeanne Hagenbach & Frédéric Koessler, 2009. "Strategic communication networks," Documents de travail du Centre d'Economie de la Sorbonne 09005, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- Rafael Di Tella & Sebastian Galiant & Ernesto Schargrodsky, 2007. "The Formation of Beliefs: Evidence from the Allocation of Land Titles to Squatters," The Quarterly Journal of Economics, Oxford University Press, vol. 122(1), pages 209-241.
When requesting a correction, please mention this item's handle: RePEc:emc:wpaper:dte536. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Daniel Ventosa-Santaulària)
If references are entirely missing, you can add them using this form.