Determinantes de la Inflación en una Economía Dolarizada: El Caso Ecuatoriano

Determinants of Inflation in a Dollarized Economy: The Case of Ecuador

Ivan Gachet, Diego Maldonado and Wilson Pérez

MPRA Paper from University Library of Munich, Germany

Abstract: 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.

Keywords: VAR; SVAR; Inflation; Time Series (search for similar items in EconPapers)
JEL-codes: C32 C51 E31 (search for similar items in EconPapers)
Date: 2008-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in Cuestiones Economicas 1.24(2008): pp. 5-28

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:17101

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