The relevance of supply shocks for inflation: the spanish case

The methodology applied in this article to the Spanish economy is based on Ball and Mankiw ( 1995 ). These authors assume that a good proxy for supply shocks is the third moment of the price changes distribution. The main data used are the monthly consumer price indexes of each region, disaggregated...

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Bibliographic Details
Published inApplied economics Vol. 41; no. 6; pp. 753 - 764
Main Authors Caraballo, M. Ángeles, Usabiaga, Carlos
Format Journal Article
LanguageEnglish
Published London Routledge 01.03.2009
Taylor and Francis Journals
Taylor & Francis Ltd
Taylor & Francis (Routledge)
SeriesApplied Economics
Subjects
Consumer Price Index
Correlation analysis
Economic models
Economic shock
Inflation
Monetary economics
Price index
Spain
Studies
Supply
Supply-side economics
Spain
Social Sciences & Humanities
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Summary:The methodology applied in this article to the Spanish economy is based on Ball and Mankiw ( 1995 ). These authors assume that a good proxy for supply shocks is the third moment of the price changes distribution. The main data used are the monthly consumer price indexes of each region, disaggregated in 57 categories, for the 1993-2005 period. We estimate the relation between mean inflation and the higher moments of the distribution, including several control variables. Our results point out that Spanish regions show a common pattern with regard to nominal rigidities, and that Spanish inflation is vulnerable to supply shocks.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0003-6846
1466-4283
DOI:10.1080/00036840601007443