Inflation persistence, structural breaks and omitted variables: a critical view
Recent empirical contributions assess time changes in inflation persistence by means of simple autoregressive models. Their reliability is discussed in the light of the econometric literature on model misspecification and it is showed that their results can be misleading due to the omission of relevant variables.
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- Andrew Levin & Jeremy Piger, 2003.
"Is Inflation Persistence Intrinsic in Industrial Economies?,"
Computing in Economics and Finance 2003
298, Society for Computational Economics.
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