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Inflation persistence on Services and Regulated Goods in Costa Rica

Revista de Ciencias Económicas

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Title Inflation persistence on Services and Regulated Goods in Costa Rica
Persistencia inflacionaria en Costa Rica: Precios de Servicios y Regulados
 
Creator León Murillo, Jorge
Valerio Berrocal, Marco
 
Subject INFLATION PERSISTENCE
STICKY PRICES
REGULATED PRICES
SERVICES
PERSISTENCIA INFLACIONARIA
PRECIOS RÍGIDOS
PRECIOS REGULADOS
SERVICIOS
 
Description The present document studies the degree of inflation persistence and price stickiness across different categories in the Costa Rican Consumer Price index (CPI), using disaggregate and aggregate data, with a particular focus in the regulated and services prices. We adopt two approaches: The parametric approach is based in an autoregressive process with constant mean, and the structural approach is based on the estimation of the New Keynesian Hybrid Phillips Curve. We use different econometric techniques, as univariate and multivariate time series, and panel data methods. The evidence suggests that changes in prices and services regulated items have higher degrees of persistence in addition to presenting rigidities in the adjustment pattern. Also it was found that using disaggregate data the degree of inflation persistence is lower than the inflation persistence estimation of univariate models with aggregate data, and this tend to reduce excluding the regulated and services products prices.
El documento estudia el grado de persistencia inflacionaria y las rigideces de precios, a nivel desagregado y agregado, de los artículos del Índice de Precios al Consumidor (IPC) en los subíndices de Bienes-Servicios y No regulados-Regulados en Costa Rica. La medición se basa en dos enfoques: el paramétrico se basa en un esquema autorregresivo con media constante y el estructural se basa en la estimación de una Curva de Phillips Neo Keynesiana híbrida. El análisis incluye tanto series de tiempo, como de datos de panel. La evidencia apunta a que los precios de artículos regulados y servicios poseen mayores grados de persistencia, además de presentar rigideces en su patrón de ajuste. Se encontró que utilizando datos desagregados la persistencia inflacionaria es menor a las estimaciones univariadas con datos agregados, además el nivel de persistencia tiende a reducirse aún más cuando se excluyen los artículos regulados o los servicios del IPC.
 
Publisher Universidad de Costa Rica
 
Date 2014-11-29
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
 
Format application/pdf
 
Identifier http://revistas.ucr.ac.cr/index.php/economicas/article/view/17263
10.15517/rce.v32i2.17263
 
Source Revista de Ciencias Económicas; Ciencias Económicas: Volumen 32, Número 2; 155-187
Revista de Ciencias Económicas; Ciencias Económicas: Volumen 32, Número 2; 155-187
2215-3489
0252-9521
 
Language spa
 
Relation http://revistas.ucr.ac.cr/index.php/economicas/article/view/17263/16750
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