The relevance of supply shocks for inflation: the spanish case
Year: 2008
Type: article
Abstract: The methodology applied in this article to the Spanish economy is based on Ball and Mankiw (1995 Ball, L and Mankiw, NG. 1995. Relative-price changes as aggregate supply shocks. Quarterly Journal of Economics, 110: 161–93. [Crossref], [Web of Science ®] , [Google Scholar]). These authors assume that a good proxy for supply shocks is the third moment of the price changes distribution. The main data used are the monthly consumer price indexes of each region, disaggregated in 57 categories, for the 1993–2005 period. We estimate the relation between mean inflation and the higher moments of the distribution, including several control variables. Our results point out that Spanish regions show a common pattern with regard to nominal rigidities, and that Spanish inflation is vulnerable to supply shocks.
Source: Applied Economics
Authors: M. Ángeles Caraballo, Carlos Usabiaga
Institutions: Universidad de Sevilla, Universidad Pablo de Olavide
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2068244422