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2 edition of Inflation and relative price dispersion in Canada found in the catalog.

Inflation and relative price dispersion in Canada

AndrГ© Binette

Inflation and relative price dispersion in Canada

an empirical assessment

by AndrГ© Binette

  • 297 Want to read
  • 38 Currently reading

Published by Bank of Canada in Ottawa .
Written in English

    Subjects:
  • Inflation (Finance) -- Canada -- Econometric models.,
  • Phillips curve.

  • Edition Notes

    Statementby André Binette and Sylvain Martel.
    SeriesBank of Canada working paper -- 2005-28, Working paper (Bank of Canada) -- 2005-28.
    ContributionsMartel, Sylvain, 1962-, Bank of Canada.
    The Physical Object
    Paginationv, 30 p. ;
    Number of Pages30
    ID Numbers
    Open LibraryOL21714265M

      The statistic shows the average inflation rate in Canada from to , with projections up until The inflation rate is calculated using the price increase of a . A price dispersion equation is tested with data from the German hyper-inflation. The equation is derived from a version of Lucas' () and Barro's () partial information-localized market models. In this extension, different excess demand elasticities across commodities imply a testable.

    Most recent CPI Canada (inflation figure) % When we talk about the rate of inflation in Canada, this often refers to the rate of inflation based on the consumer price index, or CPI for short. The Canadian CPI shows the change in prices of a standard package of goods and services which Canadian households purchase for consumption. CiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): The menu-cost models of price adjustment developed by Ball and Mankiw (; ) predict that short-run movements in inflation should be positively related to the skewness and the variance of the distribution of disaggregated relative-price shocks in each period. We test these predictions on Canadian data using the.

      Many sticky-price models suggest that relative price distortion is one of the major costs of inflation. We show that this resource misallocation is costly even at quite low rates of inflation. This is because inflation strongly affects price dispersion which in turn has an impact on the economy qualitatively similar to, and of the order of Cited by: Aug The Mysterious Cross-Country Dispersion in Mobile Phone Price Trends. David Byrne 1. Introduction. The construction of prices for information and communications technology (ICT) is a longstanding priority of the economic measurement community. 2 ICT price trends are a key indicator of technical progress in the global economy, and despite the moderate nominal share of ICT.


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Inflation and relative price dispersion in Canada by AndrГ© Binette Download PDF EPUB FB2

The authors investigate empirically the relationship between different aspects of inflation and relative price dispersion in Canada using a Markov regime-switching Phillips curve. Downloadable. The authors investigate empirically the relationship between different aspects of inflation and relative price dispersion in Canada using a Markov regime-switching Phillips curve.

They examine three theories that explain movements in relative price dispersion: the signal extraction model, the extension of the signal extraction model, and the menu cost model. Get this from a library. An empirical analysis of dynamic interrelationships among inflation, inflation uncertainty, relative price dispersion, and output growth.

[Francis Vitek; Bank of Canada.]. There is a large empirical literature on the effect of aggregate inflation on both price-level dispersion (relative price variability, RPV) and inflation rate dispersion (relative inflation.

Inflation can affect both the dispersion of commodity-specific price levels across locations (relative price variability, RPV) and the dispersion of inflation rates (relative inflation variability, RIV). Some menu-cost models and models of consumer search suggest that the RIV-inflation relationship could differ from the RPV-inflation by: 1.

relative price dispersion across sellers of homogeneous commodities in different each of three countries that differ in levels of economic development and inflation episodes: Canada during the s and s, Japan between January and Decemberand Nigeria between January to December We find thatCited by: 1.

98/ Inflation and Relative Price Dispersion: Evidence of Iran Figure2. Monthly relative price dispersion (), Inflation has been decomposed into expected inflation, unexpected inflation and uncertainty. The inflation model is an Autoregressive GARCH1 by: 1.

Downloadable. The recent literature on the welfare cost of inflation emphasizes inflation's effects on the dispersion of relative prices. This paper tests three models that predict a relationship between the Relative Price Dispersion (RPD) and facets of inflation such as expected inflation, unexpected inflation, and inflation uncertainty.

These are, correspondingly, the Sheshinski- Weiss menu. inflation uncertainty and unexpected inflation on price dispersion. According to the signal extraction models, higher inflation uncertainty and unexpected inflation make aggregate demand 1 In fact, any nonlinear dynamic pricing rule can induce a feedback relationship between.

While the comovement of price dispersion and inflation implied by standard models is positive, I find that in the data, it is negative. This is due to transitory price changes (sales): if sales are removed from the data, the comovement of price dispersion and inflation turns positive.

Using inflation expectations extracted from index bond prices, we examine the relations between expected inflation, unexpected inflation and relative price Cited by: 6.

The time series of expected and realized inflation rates: Israel, August April S. Kandel et al. / Expected inflation, unexpected inflation and relative price dispersion Ø Ø5D4 ee02 + Realizeá Inflation known on July by: 6.

relative price dispersion. We obtain two main results: First, in⁄ation a⁄ects relative price dispersion positively in the US and negatively in the UK. Second, in⁄ation uncertainty is in most cases insigni–cant in explaining relative price dispersion, thus casting doubt on the empirical relevance of Author: Gulnihal Aksoy, Don Bredin, Deirdre Corcoran, Stilianos Fountas.

empirical studies of price dispersion post-date the Internet and rely on online data. Our view is that this is more an artifact of the relative ease with which data may be collected in online marketsŠ not an indication that price dispersion is more important (or more prevalent) in online than o› ine markets.

Inflation Rate Dispersion and Convergence in Monetary and Economic Unions: Lessons for the ECB* Guenter W. Beck1 and Axel A. Weber2 Previous Version: November This Version: November Abstract: Using a set of regional inflation rates we examine the dynamics of inflation dispersion within the U.S.A., Japan and across U.S.

and Canadian. 'Since higher relative-price uncertainty implies mo,e uncertainty regarding the price of individual baskets, a shift from bonds (indexed and nominal) toward money can also be justified in terms of the precautionary motive.

q M.I. Blejer, The dispersion of relative commodity prices log mt=bo, btBD,+b2it+b^-1 +b4VRq+p, (8) where rot Cited by: Abstract. Reducing inflation became the major economic policy target for many governments in the late s.

A long list of costs were thought to be associated with higher inflation, including the unplanned redistribution of income and wealth, distorted real taxation rates, and the misallocation of resources which arose as agents became more confused about the true value of the aggregate price Cited by: 2.

relative-price shocks. We find that pure inflation accounts for % of the variability in inflation while our aggregate relative-price index accounts most of the rest. Conventional measures of relative prices are strongly but far from perfectly correlated with our relative-price index; pure inflation is only weakly correlated with money growth.

Relative Price Dispersion: Evidence and Theory Greg Kaplan, Guido Menzio, Leena Rudanko, Nicholas Trachter. NBER Working Paper No.

Issued in January NBER Program(s):Economic Fluctuations and Growth Program, Industrial Organization Program We use a large dataset on retail pricing to document that a sizeable portion of the cross-sectional variation in the price at which the. The Inflation-Unemployment Trade-off at Low Inflation pro–ts from the erosion e⁄ect of in⁄ation;4 moreover, in⁄ation creates costly price dispersion because of the asynchronized price setting.

The paper also highlights the importance of intertemporal relative-price adjust-ments (as opposed to intratemporal ones) for the long-run. Get this from a library!

Price-level dispersion versus inflation-rate dispersion: evidence from three countries. [David Fielding; James MacGee; Christopher M Hajzler; Bank of Canada,] -- "Inflation can affect both the dispersion of commodity-specific price levels across locations (relative price variability, RPV) and the dispersion of inflation rates (relative inflation variability.

Distortionary effects of inflation on relative prices are the main argument for inflation stabilization in macro models with sticky prices. Under indexation of non-optimized prices, those models imply a nonlinear and dynamic impact of inflation on the cross-sectional price dispersion (relative price or inflation variability, RPV).

Using US sectoral price data, we estimate such a relationship Cited by: 3.Relative price (%) =10, =0 =10, =-9 Generalization of Dixit-Stiglitz preferences for product diversity (Kimball, ; Smets and Wouters, ). Kink generates strategic complementarity: large demand loss for high relative price and small demand gain for low relative price.

Kurozumi(BOJ) & VanZandweghe(FRBKC) Price Dispersion & In.