English, Article edition: A SIMPLE MODEL OF INTERACTION BETWEEN CPI AND PPI: APPLICATION TO MONTHLY DATA OF EU COUNTRIES Petr Kadeřábek

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/197910
Physical Description
  • article
Language
  • English

Edition details

Title
  • A SIMPLE MODEL OF INTERACTION BETWEEN CPI AND PPI: APPLICATION TO MONTHLY DATA OF EU COUNTRIES
Author
  • Petr Kadeřábek
Physical Description
  • article
Notes
  • We consider two markets in our model: wholesale, where producers\' supply interacts with distributors\' demand, and retail with distributors\' supply and consumers\' demand. The wholesale market determines the producer price index (PPI), production and indirectly also employment. In the retail market the consumer price index (CPI) is formed. We specify a simple dynamic model with two state variables: CPI and PPI. Real variables - production and employment - are fully determined by CPI and PPI. A supply shock shows itself in instant PPI adjustment, a demand shock in CPI. Thus, in the CPI inflation equation the supply shocks are fully determined endogenously by the wholesale - retail markets relationship and for practical use we should add exogenous demand shock to the equation. On the other hand, it would be suitable to add exogenous supply shocks to the PPI inflation, production and employment equations. In the second part we implement the model on monthly data of EU countries. It will be necessary modify the model specification so that we coped with the problems of seasonality and not exactly the same structure of baskets, used for CPI and PPI computations. We estimate each equation of the model both for each single country separately and for the whole panel.
  • Static and regressive expectations, Production, Producer and consumer prices, Panel data, Inflation, Employment
  • RePEc:prg:jnlpol:v:2007:y:2007:i:2:id:598:p:226-244
Language
  • English
Contributed by
OAIster

Get this edition

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment