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Nonparametric and semiparametric evidence on the long-run effects of inflation on growth

Author

Listed:
  • Andrea Vaona

    (Department of Economics - Tilburg University [Netherlands])

  • Stefano Schiavo

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

Abstract

In this paper we adopt both a nonparametric and a semi- parametric IV estimator to show that the relationship between inflation and output growth is non-linear and that there exists a threshold level below which inflation has no effects on growth.

Suggested Citation

  • Andrea Vaona & Stefano Schiavo, 2006. "Nonparametric and semiparametric evidence on the long-run effects of inflation on growth," Working Papers hal-01065641, HAL.
    • Handle: RePEc:hal:wpaper:hal-01065641
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-01065641
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    References listed on IDEAS

    as
    1. Gylfason, Thorvaldur & Herbertsson, Tryggvi Thor, 2001. "Does inflation matter for growth?," Japan and the World Economy, Elsevier, vol. 13(4), pages 405-428, December.
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    6. By Mohsin S. Khan & Abdelhak S. Senhadji, 2001. "Threshold Effects in the Relationship Between Inflation and Growth," IMF Staff Papers, Palgrave Macmillan, vol. 48(1), pages 1-1.
    7. Michael Sarel, 1996. "Nonlinear Effects of Inflation on Economic Growth," IMF Staff Papers, Palgrave Macmillan, vol. 43(1), pages 199-215, March.
    8. Jonathan Temple, 2000. "Inflation and Growth: Stories Short and Tall," Journal of Economic Surveys, Wiley Blackwell, vol. 14(4), pages 395-426, September.
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    13. repec:bla:intfin:v:2:y:1999:i:1:p:117-38 is not listed on IDEAS
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    More about this item

    Keywords

    inflation; Growth;

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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