The Effect of Inflation on Growth - Evidence from a Panel of Transition Countries

Arbeitspapier

The paper examines the effect of inflation on growth in transition countries. It presents panel data evidence for 13 transition countries over the 1990-2003 period; it uses a fixed effects panel approach to account for possible bias from correlations among the unobserved effects and the observed country heterogeniety. The results find a strong, robust, negative effect on growth of inflation or its standard deviation, and one that appears to decline in magnitude as the inflation rate increases, as seen for OECD countries. And the results include a role for a normalized money demand in affecting growth, as well as for a convergence variable, a trade variable and a government share variable. And robustness of the baseline single equation model is examined by expanding this into a three equation simultaneous system of output growth, inflation and money demand that allows for possible simultaneity bias in the baseline model.

Angaben zum Objekt

• Sprache: Englisch
• ISBN: 978-963-9796-63-8

Verweise und Beziehungen

• Erschienen in: Series: IEHAS Discussion Papers ; No. MT-DP - 2009/12

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Financial Markets and the Macroeconomy ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance ; Monetary Growth Models
• Thema: growth ; transition ; panel data ; inflation ; money demand ; endogeneity ; Geldpolitik ; Inflation ; Wirtschaftswachstum ; Panel ; Transformationsstaaten

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Gillman, Max ; Harris, Mark N.
• Ereignis: Veröffentlichung
• (wer): Hungarian Academy of Sciences, Institute of Economics
• (wo): Budapest
• (wann): 2009

Weitere Informationen

• Handle: http://hdl.handle.net/10419/108159
• Letzte Aktualisierung: 20.09.2024, 08:24 MESZ