Is there any asymmetry in the effect of inflation on relative price variability?

It is widely perceived that relative prices are more dispersed in periods of price decreases than in periods of price increases. We show that the asymmetry results from misspecifying the true, U-shaped, underlying model with a piecewise linear regression model.

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Year of publication:	2010
Authors:	Choi, Chi-Young ; Kim, Young Se
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 108.2010, 2, p. 233-236
Publisher:	Elsevier
Keywords:	Asymmetry Inflation Relative price variability (RPV) U-shape

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008867029