Inflation And Relative Price Dispersion: Evidence For Iran

inflation and relative price dispersion: evidence for iran

Price dispersion and inflation rates: evidence from scanner data

In this paper we investigate the relationship between price dispersion and inflation; we use weekly retail scanner data from 2009 to 2011 to measure price dispersion and inflation for several dairy products. We implement a linear model to investigate the linkage between price dispersion and consumer price indexes. As in the previous literature, we obtain mixed results with respect to the relati...

An Empirical Analysis of Dynamic Interrelationships Among Inflation, Inflation Uncertainty, Relative Price Dispersion, and Output Growth

Within a unified framework, the author conducts an empirical investigation of dynamic interrelationships among inflation, inflation uncertainty, relative price dispersion, and output growth. Focusing on the Canadian industrial sector, the author finds weak evidence that inflation uncertainty rises with the level of inflation, with short-run inflation uncertainty minimized at a trend inflation r...

Relative Price Distortions and Inflation Persistence

Sticky-price models often suggest that relative price distortion is a major cost of in‡ation. We provide an intuition for this: Even at low rates, in‡ation strongly a¤ects price dispersion which in turn has an impact on the economy qualitatively similar to, and of the order of magnitude of, a negative shift in productivity. The utility cost of price dispersion is quanti…ed and its impact on opt...

Inflation Forecasting, Relative Price Variability and Skewness

This paper presents out-of-sample inflation forecasting results based on relative price variability and skewness. It is demonstrated that forecasts on long horizons of 1.5-2 years are significantly improved if the forecast equation is augmented with skewness. JEL: E17, E31, C43

The Relationship between Price Dispersion and Inflation: A Reassessment

The positive relationship between inflation and relative price variability has been taken as a proven case, but recent evidence casts doubt on the verdict. This paper shows that theory can support positive or negative relationships, while past empirical evidence may have been contaminated by aggregation bias and our measures of price dispersion and inflation. We re-examine the empirical evidenc...