Inflation and relative price variability: Reinstating Parks' results

Authors
Jaramillo, CF
Citation
Cf. Jaramillo, Inflation and relative price variability: Reinstating Parks' results, J MONEY C B, 31(3), 1999, pp. 375-385
Citations number
21
Categorie Soggetti
Economics
Journal title
JOURNAL OF MONEY CREDIT AND BANKING
ISSN journal
00222879 → ACNP
Volume
31
Issue
3
Year of publication
1999
Part
1
Pages
375 - 385
Database
ISI
SICI code
0022-2879(199908)31:3<375:IARPVR>2.0.ZU;2-S
Abstract
This paper revisits Parks' seminal work on the time series relationship bet ween inflation and relative price variability. The results reported show th at a significant positive association is obtained allowing for an asymmetri cal response of relative prices to episodes of positive and negative inflat ion. This finding is :maintained after excluding oil shock years, extending Parks' original sample to 1996, using an alternative data set and allowing for a higher degree of disaggregation.