Is there Really a Unit Root in the Inflation Rate? More Evidence from Panel Data Models
Author
Summary, in English
Time series unit root evidence suggests that inflation is nonstationary. By contrast, when using more powerful panel unit root tests, Culver and Papell (1997) find that inflation is stationary. In this article, we test the robustness of this result by applying a battery of recent panel unit root tests. The results suggest that the stationarity of inflation holds even after controlling for cross-sectional dependence and structural change.
Department/s
Publishing year
2008
Language
English
Pages
161-164
Publication/Series
Applied Economics Letters
Volume
15
Issue
3
Document type
Journal article
Publisher
Routledge
Topic
- Economics
Status
Published
ISBN/ISSN/Other
- ISSN: 1466-4291