Work

The Nexus between Inflation Risk and Consumer Perception

Year: 2015

Type: conference-paper

Abstract: This article discusses the relation between the risk of price instability and consumer perception.After quantifying the inflation/deflation risk, which introduces the preference of economic representatives as well as the whole probability distribution of price level deviating from the target zone, based on GARCH model and bootstrapping, we employ a stepwise least square to investigate the nexus between balance of risk and consumer perception.Although empirical results only find relatively weak connection between these two factors, the methodology opens a new window for future quantitative analyses.

Source: International Conference on Economics, Management, Law and Education (EMLE)

DOI: 10.2991/emle-15.2015.14

Authors: Kai Shi, Yuan Wang, Li Nie

Institutions: Northeast Normal University, Hitotsubashi University

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Funders: Northeast Normal University, China Postdoctoral Science Foundation

Award: G4725370874