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Odhad parametrů rozšířeného Kaldorova modelu a analýza stability stacionárního řešení
[An Inflation Analysis Using an Endogenous Business Cycle Model]

Author

Listed:
  • Jan Kodera
  • Quang Van Tran

Abstract

In this article we analyze the continuous inflation dynamics using a four-equation model. When constructing the model, the traditional Kaldorian two-equation model is extended by adding two other equations. One of them describes an adaptive inflation expectations and the other continuous dynamics of the money market. In this setting, the instability velocity of money circulation is assumed due to the effects of expected inflation on money circulation velocity. Then the parameters of the model are estimated using the real Czech economic data. As it is a non-linear model in its parameters, a non-linear estimation technique is used for this purpose. Further, the stationarity as well as the stability of the estimated model is thoroughly examined as its instability may indicate that the model can generate some complex dynamics.

Suggested Citation

  • Jan Kodera & Quang Van Tran, 2016. "Odhad parametrů rozšířeného Kaldorova modelu a analýza stability stacionárního řešení [An Inflation Analysis Using an Endogenous Business Cycle Model]," Politická ekonomie, Prague University of Economics and Business, vol. 2016(7), pages 769-788.
    • Handle: RePEc:prg:jnlpol:v:2016:y:2016:i:7:id:1096:p:769-788
    DOI: 10.18267/j.polek.1096
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    References listed on IDEAS

    as
    1. Claude Hillinger & Bernd Süßmuth, 2010. "The Quantity Theory of Money: An Assessment of its Real Linchpin Prediction," CESifo Working Paper Series 2995, CESifo.
    2. Hillinger, Claude, 2005. "Evidence and Ideology in Macroeconomics: The Case of Investment Cycles," Discussion Papers in Economics 694, University of Munich, Department of Economics.
    3. Guglielmo Forges Davanzati & Rosario Patalano & Guido Traficante, 2016. "The Italian economic decline in a Kaldorian theoretical perspective," Working Papers PKWP1606, Post Keynesian Economics Society (PKES).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Kaldorian model; monetary inflation model; nonlinear estimation; bootstrapping; stationary solution; stability analysis;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • C88 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Other Computer Software
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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