Determinants of Inflation and Price Level Differentials Across the Euro Area Countries

Andersson, Malin; Masuch, Klaus; Schiffbauer, Marc

doi:10.2139/ssrn.1519943

Cited by 17 publications

(6 citation statements)

References 13 publications

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“…Finally, inflation differentials may be associated with non-market forces and originate from differences in wage flexibility, administered prices, indirect taxation and market power/competition. Dynamic panel estimations for the period 1999-2006 by the ECB (Andersson et al 2009) show that inflation differentials are primarily determined by cyclical positions and inflation persistence. The persistence in inflation differentials appears to be partly explained by administered prices and to some extent by product market regulation.…”

Section: Theoretical Approaches To Inflationmentioning

confidence: 99%

Untitled

2022

EconBull

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The Greek economy has so far failed to shift its production structure towards more complex, high value-added activities incorporating knowledge-intensive practices. Greece lacks a systemic "activating knowledge" dimension. Given the country's low performance in innovation and knowledge diffusion relative to EU peers, we focus on two specific problem areas of Greek industry: skills and management practices. Both areas are key requirements to achieve robust productivity growth, in which Greece has been shown to be chronically lagging behind its peers. First, we provide an in-depth look at skills indicators to identify the scope for action, particularly in addressing mismatch. A novel result is that, by utilising mismatch indicators aggregated from microdata sourced from the recent OECD Survey of Adult Skills that was conducted as part of the Programme for the International Assessment of Adult Competencies (PIAAC), we show that Greece has the highest overskilling for professional occupations. We also corroborate previous findings about the negative relationship between skills mismatch and firm productivity. Second, we use firm-level data from the World Management Survey to give a review of management practices in Greek industry and explore the quality of these practices and their association with productivity. Finally, we use information from a novel survey on entrepreneurship, technological developments and regulatory change, and examine the structural characteristics of Greek firms that innovate and tend to adopt new technologies, with a focus on the role of size, ownership structure, global value chain participation and human resource practices. Our empirical findings provide valuable input into concrete policy proposals to increase productivity in Greek manufacturing.

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Section: Theoretical Approaches To Inflationmentioning

confidence: 99%

Untitled

2022

EconBull

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“…In the study, the data for the period between1994:01-2009:12 were analyzed with the ARDL bounds test method, and they concluded that the inflation variable was cost-supported, considering the results of those periods for Turkey. Andersson et al (2009) aimed to analyze the determinants of inflation differences and price levels in their study. In their study, they applied Panel analysis with the 1999-2006 data for the European region.…”

Section: Structuralist Theory Of Inflationmentioning

confidence: 99%

An Application on the Source of Inflation in Turkey

Azazi

2022

Yönetim Bilimleri Dergisi

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Enflasyonun yüksek olması makroekonomik olarak ülkelerin ekonomileri açısından istenmeyen durumlar arasındadır. Enflasyon ekonomilerde genellikle iki farklı sebep ile görülmektedir. Bunlar talebin çektiği ve maliyetin ittiği enflasyon olarak sıralanabilir. Çalışmanın amacı Türkiye’deki enflasyonun kaynağını araştırmaktır. Bu amaçla çalışmada Ocak 2006 ve Temmuz 2021 dönemine ait aylık üretici fiyat endeksi ve tüketici fiyat endeksi serileri kullanılmıştır. Değişkenlerin öncelikle Genelleştirilmiş Dickey Fuller Birim Kök Testi ile durağanlık durumları analiz edilmiştir. Ardından değişkenlere Granger Nedensellik Testi uygulanmıştır. Analiz sonucunda üretici fiyat endeksinden tüketici fiyat endeksine doğru tek yönlü nedensellik ilişkisi tespit edilmiştir. Bu durum Türkiye’de enflasyonun genellikle maliyetlerden kaynaklandığını göstermektedir. Bu sebeple enflasyonla mücadele için maliyet eksenli politikaların uygulanması, enflasyonun düşmesine daha fazla katkı sağlayacaktır.

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“…Since the launch of the Euro in 1999, a growing empirical literature on inflation differentials in the European Monetary Union (EMU) emerged, see Andersson et al (2009) for a recent survey. Honohan and Lane (2003) were among the first to look at the determinants of inflation differentials in the euro area, arguing that nominal effective exchange rate and business cycle fluctuations are the key drivers behind these differentials.…”

Section: Literature Reviewmentioning

confidence: 99%

“…While a small number of articles try to explain the observed source of inflation differential between a particular member country and the EMU, see Rabanal (2009), or try to determine whether inflation rates in the EMU are converging or not, see Busetti et al (2007), most papers in the literature tend to follow Honohan and Lane (2003), for instance Licheron (2007) and Andersson et al (2009). However, this strand of the literature begins by specifying an econometric model which investigates the deviation of key macroeconomic variables of each member country from the union average, a time dummy is then introduced to capture common movements in inflation and the explanatory variables across all euro area countries in any given year.…”

Section: Literature Reviewmentioning

confidence: 99%