IDEAS home Printed from https://ideas.repec.org/a/ris/rnicee/0020.html
   My bibliography  Save this article

El modelo “P estrella”: un análisis empírico

Author

Listed:
  • Liquitaya, José D.

    (Profesor Investigador y jefe del C.A. “Modelos Macroeconómicos”, Departamento de Economía, U.A.M. – Iztapalapa)

Abstract

In this paper, we have empirically tested the performance of the P Star model in the Mexican economy with data of 1985:4–2007:4 period. It is shown that long run equilibrium relationship works as expected according to the model. Besides, the error correction model constructed by using the gap between actual prices and the long term equilibrium price level (the ‘error correction mechanism’) offers a consistent explanation for the short run dynamics in prices. On the other hand, the P Star approach shows a forecasting ability similar to that presented for analogous studies about the Mexican economy and several other countries. Finally, the results support the option of a direct inflation target (instead monetary aggregate) as the intermediate variable of the monetary policy.

Suggested Citation

  • Liquitaya, José D., 2008. "El modelo “P estrella”: un análisis empírico," Revista Nicolaita de Estudios Económicos, Universidad Michoacana de San Nicolás de Hidalgo, Instituto de Investigaciones Económicas y Empresariales, vol. 0(1), pages 25-47.
    • Handle: RePEc:ris:rnicee:0020
    as

    Download full text from publisher

    File URL: http://rnee.umich.mx
    File Function: Full text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Cointegration; error correction model; forecast of inflation; monetary. policy.;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:rnicee:0020. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Plinio Hernández Barriga (email available below). General contact details of provider: https://edirc.repec.org/data/iimicmx.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.