Merging the purchasing power parity and the Phillips curve literatures: Regional evidence from Italy

Arbeitspapier

The main purpose of this paper is to merge together two strands of the literature regarding, either directly or indirectly, inflation: the PPP and the Phillips curve ones. In order to accomplish this task, this contribution applies the tools of the Empirical Growth Literature and of Dynamic Panel Data estimation on a sample of 81 Italian provinces from the year 1986 to the year 1998, exploiting cross-sectional variation to avoid to use instruments not directly connected with the inflation generating process. This research strategy allows to conclude that inflation is characterized by a low degree of persistence and by conditional b-convergence across provinces. Its most suitable driving variable is the unemployment rate and there are long-term non neutralities at the regional level.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Kiel Working Paper ; No. 1282

Classification and Topics

• Classification: Wirtschaft
• Subject: Inflation ; Regionale Preisstruktur ; Kaufkraftparität ; Phillips-Kurve ; Schätzung ; Italien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Vaona, Andrea
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/3841
• Last update: 10.03.2025, 11:43 AM CET