Determinantes de la Inflación en una Economía Dolarizada: El Caso Ecuatoriano
[Determinants of Inflation in a Dollarized Economy: The Case of Ecuador]
In this paper we estimate a structural VAR model to identify the causes of inflation in Ecuador. To examine the VAR dynamics, we use the decomposition of the variance because it provides information about the relative importance of each shock to the variables in the VAR. We differ from previous studies because we are able not only to identify the impact of each exogenous variable on the inflation rate but also to estimate the inflation rate from the exogenous variables in the model. We found that on the first quarter of 2008 the annual inflation rate in Ecuador was mainly caused by international prices, exchange rates and public policy.
|Date of creation:||Feb 2008|
|Date of revision:|
|Publication status:||Published in Cuestiones Economicas 1.24(2008): pp. 5-28|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
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.:
- Gonzalo Llosa & Vicente Tuesta & Marco Vega, 2006. "A BVAR Forecasting Model for Peruvian Inflation," Money Affairs, Centro de Estudios Monetarios Latinoamericanos, vol. 0(2), pages 117-141, July-Dece.
- George Kapetanios & Massimiliano Marcellino, 2006.
"Factor-GMM Estimation with Large Sets of Possibly Weak Instruments,"
577, Queen Mary University of London, School of Economics and Finance.
- Kapetanios, George & Marcellino, Massimiliano, 2010. "Factor-GMM estimation with large sets of possibly weak instruments," Computational Statistics & Data Analysis, Elsevier, vol. 54(11), pages 2655-2675, November.
- Kapetanios, George & Marcellino, Massimiliano, 2010. "Factor-GMM Estimation with Large Sets of Possibly Weak Instruments," CEPR Discussion Papers 7726, C.E.P.R. Discussion Papers.
- Kim, Soyoung & Roubini, Nouriel, 2000. "Exchange rate anomalies in the industrial countries: A solution with a structural VAR approach," Journal of Monetary Economics, Elsevier, vol. 45(3), pages 561-586, June.
- Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
- James H. Stock & Mark W. Watson, 2005. "Implications of Dynamic Factor Models for VAR Analysis," NBER Working Papers 11467, National Bureau of Economic Research, Inc.
- Dhakal, Dharmendra & Kandil, Magda & Sharma, Subhash C. & Trescott, Paul B., 1994. "Determinants of the inflation rate in the United States: A VAR investigation," The Quarterly Review of Economics and Finance, Elsevier, vol. 34(1), pages 95-112.
- Seymen, Atilim, 2008. "A Critical Note on the Forecast Error Variance Decomposition," ZEW Discussion Papers 08-065, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:17101. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.