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CROSS‐COUNTRY EVIDENCE ON LONG‐RUN GROWTH AND INFLATION

CROSS‐COUNTRY EVIDENCE ON LONG‐RUN GROWTH AND INFLATION While inflation is generally inversely related to growth, I show that estimates of the relationship seer two robustness problems which plague a variety of model specifications. First, growth‐inflation results are highly sensitive to modifications to the country sample, limited from the start to low‐ and moderate‐inflation countries. Second, results are also sensitive to modifications in the time period of analysis. In conjunction with the regression specification sensitivity documented by Levine and Renelt (1992), these results should further discourage the practice cf quantifying inflation's effects with cross‐county growth regressions. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Economic Inquiry Wiley

CROSS‐COUNTRY EVIDENCE ON LONG‐RUN GROWTH AND INFLATION

Economic Inquiry , Volume 35 (1) – Jan 1, 1997

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References (17)

Publisher
Wiley
Copyright
Copyright © 1997 Wiley Subscription Services, Inc., A Wiley Company
ISSN
0095-2583
eISSN
1465-7295
DOI
10.1111/j.1465-7295.1997.tb01895.x
Publisher site
See Article on Publisher Site

Abstract

While inflation is generally inversely related to growth, I show that estimates of the relationship seer two robustness problems which plague a variety of model specifications. First, growth‐inflation results are highly sensitive to modifications to the country sample, limited from the start to low‐ and moderate‐inflation countries. Second, results are also sensitive to modifications in the time period of analysis. In conjunction with the regression specification sensitivity documented by Levine and Renelt (1992), these results should further discourage the practice cf quantifying inflation's effects with cross‐county growth regressions.

Journal

Economic InquiryWiley

Published: Jan 1, 1997

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