Convergence of Prices and Rates of Inflation*

Busetti, Fabio; Fabiani, Silvia; Harvey, Andrew

doi:10.1111/j.1468-0084.2006.00460.x

Cited by 169 publications

(29 citation statements)

References 20 publications

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“…It has been shown that the KPSS test without constant has power against a stationary process with a non-zero mean, as well as, against a non-stationary process (Busetti and Harvey, 2002 have replaced the mean of the differences between the two series by the last value of the differenced series to test whether our data are converging. According to Busetti et al (2006), the subtraction of the last observation is a possible way of enhancing the power of the ADF test. Also, we have chosen 5 as a maximum number of delayed terms.…”

Section: Resultsmentioning

confidence: 99%

Convergence of greenhouse gas emissions among G7 countries

2015

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The convergence of air pollutants is a major concern for policy makers since all the countries pursue the goal of allocating the emissions equally internationally in the future.Hence the examination of the existence of convergence is important for the climate change protection of the earth. In this paper, greenhouse gas (GHG) emissions convergence among the G7 countries for the period between 1990 and 2011 is examined using the pair-wise testing technique proposed by Pesaran (2007) that aims to analyse probabilistic convergence across a large number of cross section units. Next we proceed with multivariate tests for stability and the existence of unit roots. Finally, the analysis is complemented by the use of the panel stationarity test accounting for structural changes as proposed by Carrion-i-Silvestre et al. (2005) test. Overall, the results do not confirm the hypothesis of convergence for the countries in question, although, more recently, the countries have shown a small decline in their GHG emissions.

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Section: Resultsmentioning

confidence: 99%

Convergence of greenhouse gas emissions among G7 countries

2015

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“…Apart from Beck et al (2009), other works also report regional inflation convergence. For instance, Busetti et al (2006) conduct an analysis of the price level and the inflation rate for the monthly series of the CPI in 19 Italian regional capitals over the 1970-2003 period, concluding that the convergence process is stronger for the inflation rate. Gozgor (2013) also observes convergence in Turkish regional inflation rates (period 2004-2011).…”

Section: Disinflation and Inflation Convergence Within A European Conmentioning

confidence: 99%

The economic integration of Spain: a change in the inflation pattern

2016

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The behavior of Spanish inflation rates at the provincial level (consumption prices) differs over the two spans of time considered in our study (1955.1-1978.6, 1978.7-2014.4). We point to a long list of institutional and economic changes, at national and international levels, as the potential factors that might have led to this new pattern. In addition to confirming the remarkable persistence shown by the Spanish inflation, the PANIC (panel analysis of non-stationarity in idiosyncratic and common components) analysis we undertake identifies a higher importance of the common component of the series in the second period studied. Besides inflation, we draw attention to a battery of economic and labor variables, mostly through regional data, and we conclude that they tend to converge as well, particularly in the case of our second period of analysis. There are several theoretical avenues whereby the geographic convergence of these variables and the observed inflation convergence could be related. We also relate the common factor in inflation obtained to some potential explanatory variables. Moreover, a relevant additional analysis, which is only feasible for the second period, is implemented by focusing on the weightings attributed to the different groups of goods and services that make up the Consumer Price Index. The outcome we obtain is straightforward: the shopping basket across Spanish provinces has tended to become more homogeneous. In summary, a variety of changes, which we regard as having increased essentially since the late 70s, with the intensification of the Spanish integration in the core of European Union, among other factors, have brought about a regime shift Electronic supplementary material The online version of this article

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“…Cechetti et al (2002), for instance, found a unit root in US city price levels with an implied half-life of 9-10 years over a very long sample period. According to Busetti et al (2006) three quarters of price levels across Italian regional capitals are not converging. Dayanandan and Ralhan (2005) estimate CPI half-lives of 7-8 years for Canadian provinces and cities.…”

Section: Regional Price and Income Variationmentioning

confidence: 99%

Disparities in Prices and Income across German NUTS 3 Regions

Kosfeld

Eckey

Lauridsen³

2008

Applied Economics Quarterly

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract. In EU countries, knowledge on spatial disparities in overall price level is extremely scarce. When interregional price disparities are large, however, nominal income measures fail to assess prosperity and the catch-up processes of regions. Despite its importance for regional policy, no official regional price statistic is available as a standard. On account of this gap, this paper deals with the econometric estimation of regional price indices for German NUTS 3 regions. Econometric price models for the consumer price index (CPI) and the housing rent index (HRI) are developed on the ground of utility maximization in a two-goods model. The estimated price indices are used to analyse price disparities in the period 1995-2004 across German NUTS 3 regions. Real income comparisons show that the East/West gap is likely to be substantially larger than assessed from incomplete price data in previous studies. Terms of use: Documents in

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Convergence of Prices and Rates of Inflation*

Cited by 169 publications

References 20 publications

Convergence of greenhouse gas emissions among G7 countries

Convergence of greenhouse gas emissions among G7 countries

The economic integration of Spain: a change in the inflation pattern

Disparities in Prices and Income across German NUTS 3 Regions

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