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

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  • Vaona, Andrea
  • Schiavo, Stefano

Abstract

In this paper we adopt both a nonparametric and a semi-parametric IV estimator to show that the relationship between inflation and output growth is non-linear and that there exists a threshold level below which inflation has no effects on growth.

Suggested Citation

  • Vaona, Andrea & Schiavo, Stefano, 2006. "Nonparametric and semi-parametric evidence on the long-run effects of inflation on growth," Kiel Working Papers 1286, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1286
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    References listed on IDEAS

    as
    1. Gylfason, Thorvaldur & Herbertsson, Tryggvi Thor, 2001. "Does inflation matter for growth?," Japan and the World Economy, Elsevier, vol. 13(4), pages 405-428, December.
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    7. Michael Sarel, 1996. "Nonlinear Effects of Inflation on Economic Growth," IMF Staff Papers, Palgrave Macmillan, vol. 43(1), pages 199-215, March.
    8. Jonathan Temple, 2000. "Inflation and Growth: Stories Short and Tall," Journal of Economic Surveys, Wiley Blackwell, vol. 14(4), pages 395-426, September.
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    13. repec:bla:intfin:v:2:y:1999:i:1:p:117-38 is not listed on IDEAS
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    More about this item

    Keywords

    Growth; Inflation;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other

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