Full text available in Adobe Acrobat format:http://www.ebr.edu.pl/volume16/issue3/2016_3_121.pdf
Volume 2 (16) Number 3 pp. 121-137
Dariusz Błaszczuk
Vistula University, Faculty of Business and International Relations,Warsaw, Poland
Simple four-step procedure of parabolic B curve determination for OECD countries in 1990Q1–2015Q4
Abstract:
In theory the short-term relationship between inflation and GDP rate is
known as the positive slope straight line SAS. In practice it is reflected by a concave
non-monotonic function.
The results of estimation depend on unusual observations. We propose a simple
four-step procedure: first, basic estimation based on all observations; then estimation
having ignored outliers; next, estimation on the average GDP rates for given inflation
rates for the same observations; lastly, estimation skipping outlying averages.
Empirical analysis for 26 OECD countries on quarterly data brought satisfactory results.
They justified the determination of optimal GDP rate and corresponding inflation
for every country. Finally, recommendations for policymakers have been formulated.
Keywords: simple three-step procedure, parabolic B curve, optimal inflation, neutral inflation, inflation rate, GDP rate, relationship between inflation and GDP rate, OECD countries.
DOI: 10.18559/ebr.2016.3.8
For citation:
| MLA | Błaszczuk, Dariusz. "Simple four-step procedure of parabolic B curve determination for OECD countries in 1990Q1–2015Q4." Economics and Business Review EBR 16.3 (2016): 121-137. DOI: 10.18559/ebr.2016.3.8 |
| APA | Błaszczuk, D. (2016). Simple four-step procedure of parabolic B curve determination for OECD countries in 1990Q1–2015Q4. Economics and Business Review EBR 16(3), 121-137 DOI: 10.18559/ebr.2016.3.8 |
| ISO 690 | BŁASZCZUK, Dariusz. Simple four-step procedure of parabolic B curve determination for OECD countries in 1990Q1–2015Q4. Economics and Business Review EBR, 2016, 16.3: 121-137. DOI: 10.18559/ebr.2016.3.8 |