Is there Really a Unit Root in the Inflation Rate? More Evidence from Panel Data Models

MPRA Paper from University Library of Munich, Germany

Abstract: Time series unit root evidence suggests that inflation is nonstationary. By contrast, when using more powerful panel unit root tests, Culver and Papell (1997) find that inflation is stationary. In this paper, we test the robustness of this result by applying a battery of recent panel unit root tests. The results suggest that the stationarity of inflation holds even after controlling for crosssectional dependence and structural change.

Keywords: Unit Root; Inflation; Cross-Sectional Dependence; Structural Change (search for similar items in EconPapers)
JEL-codes: C32 C33 E31 (search for similar items in EconPapers)
Date: 2006
New Economics Papers: this item is included in nep-cba, nep-ets, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/136/1/MPRA_paper_136.pdf original version (application/pdf)

Related works:
Journal Article: Is there really a unit root in the inflation rate? More evidence from panel data models (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:136

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().