Nonparametric and semiparametric evidence on the long-run effects of inflation on growth

Vaona, Andrea; Schiavo, Stefano

doi:10.1016/j.econlet.2006.09.004

Cited by 57 publications

(45 citation statements)

References 12 publications

(8 reference statements)

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“…By employing the semiparametric IV estimator of Vaona and Schiavo (2007) and Park (2003), we also can account for the potential endogeneity of the inflation rate.…”

Section: Methodsmentioning

confidence: 99%

“…We account for the possibility that [ | ] ≠ 0 by estimating (2) using the model with a valid instrumental variable. Following Vaona and Schiavo (2007) and Balcilar et al (2014), we estimate the model in equation (2) using the semiparametric IV estimation approach of Park (2003). We determine the bandwidth, using the least-square cross-validation method of Li et al (2013).…”

Section: Methodsmentioning

confidence: 99%

“…In the long-run, the relationship between inflation and income inequality can depend on the initial level of inflation. 1 For instance, lower long-run inflation positively affects growth for countries with initially high inflation (Fischer, 1993;Funk and Kromen, 2010;Vaona and Schiavo, 2007). In low and moderate inflation economics, however, inflation does not affect economic instability which can discourage investment and restrain long-run growth (Pindyck and Solimano, 1993).…”

Section: Introductionmentioning

confidence: 99%

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The relationship between the inflation rate and inequality across U.S. states: a semiparametric approach

et al. 2018

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This paper uses 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, 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 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.JEL Codes: E31, D31, C14.

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“…By employing the semiparametric IV estimator of Vaona and Schiavo (2007) and Park (2003), we also can account for the potential endogeneity of the inflation rate.…”

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The relationship between the inflation rate and inequality across U.S. states: a semiparametric approach

et al. 2018

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“…Our approach is also related to the empirical growth studies that use nonparametric and semiparametric models to model parameter heterogeneity in the cross-country growth process. Examples include Liu and Stengos (1999) and Ketteni et al (2007) for an additive semiparametric partially linear model; Vaona and Schiavo (2007) for a semiparametric partial linear model; Durlauf et al (2001), Mamuneas et al (2006), Kourtellos (2011), and Kumbhakar and Sun (2012) for a varying coefficient model; and Henderson et al 2011for a nonparametric model.…”

Section: Introductionmentioning

confidence: 99%

Growth and Debt: An Endogenous Smooth Coefficient Approach

Koroglu

2019

JRFM

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The new growth theories with an emphasis on fundamental determinants such as institutions suggest a non-linear cross-country growth process. In this paper, we investigate the public debt and economic growth relationship using the semi-parametric smooth coefficient approach that allows democracy to influence this relationship and parameter heterogeneity in the unknown functional form and addresses the endogeneity of variables. We find results consistent with the previous literature that identified a significant adverse effect of public debt on growth for the countries below a particular democracy level. However, we also find conclusive evidence that countries with high institutional quality have an adverse effect of public debt on growth for the period 1980–2009, as well as for the extended period including the years 2010–2014. A 10-percentage point increase in the debt-to-GDP ratio is associated with a 0.12% and 0.07% decrease in the subsequent 10-year period real GDP growth rate for the zero democracy countries and for the countries with a democracy score of 10, respectively.

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“…• Pollin and Zhu (2006) analizan 80 países entre 1961 y 2000; encuentran un umbral del 14-16% para países de ingreso medio, y del 15-23% para países de ingresos bajos. • Vaona and Schiavo (2007) estudian 167 países entre 1960 y 1999, empleando métodos no-paramétricos y semiparamétricos, y encuentran un umbral del 12% debajo del cual la inflación no sería perjudicial para el crecimiento, aunque no obtienen resultados claros para países en desarrollo, un resultado que Vaona and Schiavo (2007) piensan que se debe a las diferentes experiencias de los países agrupados como en desarrollo. • Bick (2010) analiza 40 países en desarrollo, entre 1960 a 2004, y encuentra un umbral del 19% que cae al 12% si se incluye un intercepto de régimen.…”

Section: Fundamentos Teóricos Y Evidencia Empírica Previaunclassified

Nicaragua: inflación de umbral, crecimiento económico y la nueva política monetaria después de la crisis internacional

Martínez¹

2015

Ensayos sobre Política Económica

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información del artículo Historia del artículo: Recibido el 28 de junio de 2014 Aceptado el 15 de enero de 2015 On-line el 16 de marzo de 2015 Códigos JEL: C11 E31 E58 Palabras clave: Métodos bayesianos Umbral de inflación Políticas de la Banca Centralr e s u m e n Después de la crisis internacional se sugirió elevar las metas de inflación para dar más espacio a la política monetaria durante épocas contractivas del producto. Este estudio propone que el límite para elevar la meta de inflación debería ser el umbral de inflación, definido como aquel por encima del que la variación de precios es perjudicial para el crecimiento económico. Para estimar este umbral se proponen métodos Bayesianos. Los resultados muestran que encima del umbral existe una relación negativa y estadísticamente significativa entre la inflación y las variaciones del producto. © 2014 Banco de la República de Colombia. Publicado por Elsevier España, S.L.U. Todos los derechos reservados. Nicaragua: Threshold inflation, economic growth and new monetary policy after the international crisis t r a c tAfter the international crisis, it was suggested that inflation targets should be raised in order to allow more space to monetary policies during contractionary product times. The present study proposes that the limit to raise the inflation target should be threshold inflation, defined as the rate above which price variability is detrimental to economic growth. Bayesian methods are proposed to estimate this threshold. Results suggest that over the threshold there is a negative and statistically significant relationship between inflation and variations in the product.

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Nonparametric and semiparametric evidence on the long-run effects of inflation on growth

Cited by 57 publications

References 12 publications

The relationship between the inflation rate and inequality across U.S. states: a semiparametric approach

The relationship between the inflation rate and inequality across U.S. states: a semiparametric approach

Growth and Debt: An Endogenous Smooth Coefficient Approach

Nicaragua: inflación de umbral, crecimiento económico y la nueva política monetaria después de la crisis internacional

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