Download or read book Nonlinear Relation Between Inflation and Growth Panel Data Analysis written by Anna Miller and published by GRIN Verlag. This book was released on 2013-10-24 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2013 in the subject Economics - Economic Cycle and Growth, grade: 64%, University of Nottingham, language: English, abstract: This paper examines the inflation-growth interaction for different country groups with similar national incomes for the period 1970-2011. It could be confirmed that this relation is strictly nonlinear with a threshold level of inflation of 3% for high-income countries and 13% for low-income countries. Although this result is in line with previous empirical studies based on a similar data set, much smaller samples needed to be used to obtain these results. Inflation threshold levels are estimated using the iteration method and different panel-specific techniques. Strongly significant thresholds were yielded only when controlling for country-fixed effects. Policymakers can use the findings for high-income or industrialised countries as a guide for inflation targeting, however more precise analyses for less advanced countries are needed in order to be useful for monetary policy.

Download or read book Nonlinear Relation Between Inflation and Growth Panel Data Analysis written by Anna Miller and published by . This book was released on 2013-11 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2013 in the subject Economics - Economic Cycle and Growth, grade: 64%, University of Nottingham, language: English, abstract: This paper examines the inflation-growth interaction for different country groups with similar national incomes for the period 1970-2011. It could be confirmed that this relation is strictly nonlinear with a threshold level of inflation of 3% for high-income countries and 13% for low-income countries. Although this result is in line with previous empirical studies based on a similar data set, much smaller samples needed to be used to obtain these results. Inflation threshold levels are estimated using the iteration method and different panel-specific techniques. Strongly significant thresholds were yielded only when controlling for country-fixed effects. Policymakers can use the findings for high-income or industrialised countries as a guide for inflation targeting, however more precise analyses for less advanced countries are needed in order to be useful for monetary policy.

Download or read book Non linearity in the Inflation Growth Relationship in Developing Economies written by Deniz Baglan and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Inflation Disinflation and Growth written by Mr.Atish R. Ghosh and published by International Monetary Fund. This book was released on 1998-05-01 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: Although few would doubt that very high inflation is bad for growth, there is much less agreement about moderate inflation’s effects. Using panel regressions and a nonlinear specification, this paper finds a statistically and economically significant negative relationship between inflation and growth. This relationship holds at all but the lowest inflation rates and is robust across various samples and specifications. The method of binary recursive trees identifies inflation as one the most important statistical determinants of growth. Finally, while there are short-run growth costs of disinflation, these are only relevant for the most severe disinflations, or when the initial inflation rate is well within the single-digit range.

Download or read book Nonlinear Effects of Inflationon Economic Growth written by Mr.Michael Sarel and published by International Monetary Fund. This book was released on 1995-06-01 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the possibility of nonlinear effects of inflation on economic growth. It finds evidence of a significant structural break in the function that relates economic growth to inflation. The break is estimated to occur when the inflation rate is 8 percent. Below that rate, inflation does not have any effect on growth, or it may even have a slightly positive effect. When the inflation rate is above 8 percent, however, the estimated effect of inflation on growth rates is significant, robust and extremely powerful. The paper also demonstrates that when the existence of the structural break is ignored, the estimated effect of inflation on growth is biased by a factor of three.

Download or read book Inflation and Growth written by Stephanie Kremer and published by . This book was released on 2010 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Money Growth and Inflation written by Arusha Cooray and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The relationship between money growth and inflation is a topic of debate among macroeconomists. This paper contributes to the empirical literature on the money-inflation pass-through using a Nonlinear Auto-Regressive Distributed Lag model (NARDL) for three countries (the U.S., U.K. and Japan) over an estimation period spanning 1950Q1 to 2014Q4. This methodology allows for empirical tests of short- and long-run asymmetric responses of inflation to both positive and negative shocks affecting money growth of three monetary aggregates (M, M, M). The results reveal that inflation responds asymmetrically to monetary shocks in the long-run for all three countries. Robustness tests are also undertaken by carrying out the Hatemi-J (Empirical Economics, Vol. 43 (2012), pp. 447-456) causality test and splitting the sample period into two, before and after the financial crisis. The findings indicate the existence of a relation between money growth and inflation in the post-crisis period only in the case of the U.K. When we use different break points, we find that the symmetric relationship more likely occurs in the post-crisis period.

Download or read book Nonlinear Effects of Inflation on Economic Growth written by Michael Sarel and published by . This book was released on 2006 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the possibility of nonlinear effects of inflation on economic growth. It finds evidence of a significant structural break in the function that relates economic growth to inflation. The break is estimated to occur when the inflation rate is 8 percent. Below that rate, inflation does not have any effect on growth, or it may even have a slightly positive effect. When the inflation rate is above 8 percent, however, the estimated effect of inflation on growth rates is significant, robust and extremely powerful. The paper also demonstrates that when the existence of the structural break is ignored, the estimated effect of inflation on growth is biased by a factor of three.

Download or read book Is There a Debt threshold Effect on Output Growth written by Mr.Alexander Chudik and published by International Monetary Fund. This book was released on 2015-09-08 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies the long-run impact of public debt expansion on economic growth and investigates whether the debt-growth relation varies with the level of indebtedness. Our contribution is both theoretical and empirical. On the theoretical side, we develop tests for threshold effects in the context of dynamic heterogeneous panel data models with cross-sectionally dependent errors and illustrate, by means of Monte Carlo experiments, that they perform well in small samples. On the empirical side, using data on a sample of 40 countries (grouped into advanced and developing) over the 1965- 2010 period, we find no evidence for a universally applicable threshold effect in the relationship between public debt and economic growth, once we account for the impact of global factors and their spillover effects. Regardless of the threshold, however, we find significant negative long-run effects of public debt build-up on output growth. Provided that public debt is on a downward trajectory, a country with a high level of debt can grow just as fast as its peers in the long run.

Download or read book Economic Growth and Financial Development written by Muhammad Shahbaz and published by Springer Nature. This book was released on 2021-09-21 with total page 245 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book looks into the relationship between financial development, economic growth, and the possibility of a potential capital flight in the transmission process. It also examines the important role that financial institutions, financial markets, and country-level institutional factors play in economic growth and their impact on capital flight in emerging economies. By presenting new theoretical insights and empirical country studies as well as econometric approaches, the authors focus on the relationship between financial development and economic growth with capital flight in the era of financial crisis. Therefore, this book is a must-read for researchers, scholars, and policy-makers, interested in a better understanding of economic growth and financial development of emerging economies alike.

Download or read book IMF Staff papers Volume 45 No 4 written by International Monetary Fund. Research Dept. and published by International Monetary Fund. This book was released on 1998-01-01 with total page 180 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper describes the issue of corruption around the world. The paper surveys and discusses issues related to the causes, consequences, and scope of corruption, and possible corrective actions. It emphasizes the costs of corruption in terms of economic growth. It also emphasizes that the fight against corruption may not be cheap and cannot be independent from the reform of the state. If certain reforms are not made, corruption is likely to continue to be a problem regardless of actions directly aimed at curtailing it.

Download or read book Exports Inflation and Growth written by Thorvaldur Gylfason and published by International Monetary Fund. This book was released on 1997-09-01 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper identifies some of the main determinants of exports and economic growth in cross-sectional data from the World Bank, covering 160 countries in the period 1985-1994. First, the linkages between the propensity to export and population, per capita income, agriculture, primary exports, and inflation are studied by statistical methods. Then, the relationship between economic growth and some of the above-mentioned determinants of exports and investment are scrutinized the same way. The main conclusion is that, in the period under review, high inflation and an abundance of natural resources tended to be associated with low exports and slow growth.

Download or read book The Costs and Benefits of Price Stability written by Martin Feldstein and published by University of Chicago Press. This book was released on 2007-12-01 with total page 374 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years, the Federal Reserve and central banks worldwide have enjoyed remarkable success in their battle against inflation. The challenge now confronting the Fed and its counterparts is how to proceed in this newly benign economic environment: Should monetary policy seek to maintain a rate of low-level inflation or eliminate inflation altogether in an effort to attain full price stability? In a seminal article published in 1997, Martin Feldstein developed a framework for calculating the gains in economic welfare that might result from a move from a low level of inflation to full price stability. The present volume extends that analysis, focusing on the likely costs and benefits of achieving price stability not only in the United States, but in Germany, Spain, and the United Kingdom as well. The results show that even small changes in already low inflation rates can have a substantial impact on the economic performance of different countries, and that variations in national tax rules can affect the level of gain from disinflation.

Download or read book Advances in Panel Data Analysis in Applied Economic Research written by Nicholas Tsounis and published by Springer. This book was released on 2018-04-17 with total page 701 pages. Available in PDF, EPUB and Kindle. Book excerpt: This proceedings volume presents new methods and applications in applied economic research with an emphasis on advances in panel data analysis. Featuring papers presented at the 2017 International Conference on Applied Economics (ICOAE) held at Coventry University, this volume provides current research on econometric panel data methodologies as they are applied in microeconomics, macroeconomics, financial economics and agricultural economics. International Conference on Applied Economics (ICOAE) is an annual conference that started in 2008 designed to bring together economists from different fields of applied economic research in order to share methods and ideas. Applied economics is a rapidly growing field of economics that combines economic theory with econometrics to analyse economic problems of the real world usually with economic policy interest. In addition, there is growing interest in the field for panel data estimation methods, tests and techniques. This volume makes a contribution in the field of applied economic research in this area. Featuring country specific studies, this book will be of interest to academics, students, researchers, practitioners, and policy makers in applied economics and economic policy.

Download or read book Essays on the Determinants of Income and Wealth Inequality in the United States written by Shin Chang and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates the relevant factors that drive income and wealth inequality in the United States with the aim of facilitating a better understanding of the dynamic relationships between inequality and key macroeconomic variables. This can serve as a prerequisite to the ability of policymakers to restrain the negative externalities associated with increasing inequality and implement measures to reduce the unexpected effects. The thesis consists of five independent papers corresponding to five chapters. As economic growth is a primary goal of every country and widely accepted tool for reducing economic inequality, our study starts with economic growth. The first paper examines the relationship between the U.S. per capita real GDP and income inequality over the period 1917 to 2012. The literature uncovers a complex set of interactions, which depends on the specific research method and sample, between inequality and economic growth and highlights the difficulty of capturing a definitive causal relationship. Inequality either promotes, retards, or does not affect growth. Most existing studies that examine the inequality-growth nexus exclusively utilize time-domain methods. We use wavelet analysis which allows the simultaneous examination of correlation and causality between the two series in both the time and frequency domains. We find robust evidence of positive correlation between the growth and inequality across frequencies. Yet, directions of causality vary across frequencies and evolve with time. In the time-domain, the time-varying nature of long-run causalities implies structural changes in the two series. These findings provide a more thorough picture of the relationship between the U.S. per capita real GDP and inequality measures over time and frequency, suggesting important implications for policy makers. Inflation targeting is a monetary policy where the central bank sets a specific inflation rate as its goal. The federal government spurs economic growth by adding liquidity, credit, and jobs to the economy and inflation stimulate the demand needed to drive economic growth. The second paper investigates the effects of the inflation rate on income inequality to see whether monetary policy and the resulting inflation rate can affect income inequality and improve the well-being of individuals. Our analysis relies on a cross-state panel for the United States over the 1976 to 2007 period to assess the relationship between income inequality and the inflation rate, employing a semiparametric instrument variable (IV) estimator. By using cross-state panel data, we minimize the problems associated with data comparability often encountered in cross-country studies related to income inequality. We find that the relationship depends on the level of the inflation rate. A positive relationship occurs only if the states exceed a threshold level of the inflation rate. Below this value, inflation rate lowers income inequality. The results suggest that a nonlinear relationship exists between income inequality and the inflation rate. The researchers also examine the relationship between income inequality and growth in personal income, since personal income exerts a large effect on consumer consumption, and since consumer spending drives much of the economy. The third paper investigates the causal relationship between personal income and income inequality in a panel data of 48 states for the period of 1929-2012. Although inequality rose almost everywhere between 1980 to present, some states and regions experienced substantially greater increases in inequality than did others. The decentralization allows different state level of policies, however, there is also a cross-state consistency in how those policies respond to the main economic shocks. Since U.S. states are subject to significant spatial effects given their high level of integration, ignoring cross-sectional dependency may lead to substantial bias and size distortions. We employ a causality methodology proposed by Emirmahmutoglu and Kose (2011), as it takes into account possible slope heterogeneity and cross-sectional dependency in a multivariate panel. Evidence of bi-directional causal relationship exists for several inequality measures -- the Atkinson Index, Gini Coefficient, the Relative Mean Deviation, TheiliÌ8℗¿℗ưs entropy Index and Top 10% -- but no evidence of the causal relationship for the Top 1 % measure. Also, this paper finds state-specific causal relationships between personal income and inequality. The level of development of the United States is related to the sophistication of the financial structure which influences the ability to hedge against shocks and to loosen spending constraints. It leads us to investigate if the financial development affects income inequality in the U.S. In the fourth paper, we look into the role of financial development on U.S. state-level income inequality in a panel data of 50 states from 1976 to 2011. To our knowledge, this paper is the first regarding examining the role of financial development on U.S. state-level inequality. We analyze the data using Fixed Effect and Dynamic Fixed Effect regression. We also divide 50 states into two groups-states, with higher inequality measure and states with lower inequality measures than average of the cross-state average of the inequality, to examine the possible nonlinear impact of financial development on income inequality. We find robust results whereby financial development linearly increases income inequality for the 50 states. When we divide 50 states into two separate groups of higher and lower inequality states than the cross-state average inequality, the effect of financial development on income inequality appears non-linear. When financial development improves, the effect increases at an increasing rate for high income inequality states, whereas an inverted U-shaped relationship exists for low-income inequality states.

Download or read book Inflation Uncertainty and Growth written by Nicholas Apergis and published by . This book was released on 2005 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores empirically the link between inflation uncertainty and economic growth through a panel data analysis with a data set from OECD economies that covers the period from 1969 to 1999 and the GARCH methodology. The main results point out that inflation uncertainty has an adverse impact on economic growth in the majority of the cases under investigation.

Download or read book Applied Econometric Analysis Using Cross Section and Panel Data written by Deep Mukherjee and published by Springer Nature. This book was released on 2024-01-03 with total page 625 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is a collection of 20 chapters on chosen topics from cross-section and panel data econometrics. It explores both theoretical and practical aspects of selected cutting-edge techniques which are gaining popularity among applied econometricians, while following the motto of “keeping things simple”. Each chapter gives a basic introduction to one such method, directs readers to supplementary references, and shows an application. The book takes into account that—A: The field of econometrics is evolving very fast and leading textbooks are trying to cover some of the recent developments in revised editions. This book offers basic introduction to state-of-the-art techniques and recent advances in econometric models with detailed applications from various developing and developed countries. B: An applied researcher or practitioner may prefer reference books with a simple introduction to an advanced econometric method or model with no theorems but with a longer discussion on empirical application. Thus, an applied econometrics textbook covering these cutting-edge methods is highly warranted; a void this book attempts to fills.The book does not aim at providing a comprehensive coverage of econometric methods. The 20 chapters in this book represent only a sample of the important topics in modern econometrics, with special focus on econometrics of cross-section and panel data, while also recognizing that it is not possible to accommodate all types of models and methods even in these two categories. The book is unique as authors have also provided the theoretical background (if any) and brief literature review behind the empirical applications. It is a must-have resource for students and practitioners of modern econometrics.