An Expectation of the Rate of Inflation According to Inflation-Unemployment Interaction in Croatia
According to the interaction of inflation and
unemployment, expectation of the rate of inflation in Croatia is
estimated. The interaction between inflation and unemployment is
shown by model based on three first-order differential i.e. difference
equations: Phillips relation, adaptive expectations equation and
monetary-policy equation. The resulting equation is second order
differential i.e. difference equation which describes the time path of
inflation. The data of the rate of inflation and the rate of
unemployment are used for parameters estimation. On the basis of
the estimated time paths, the stability and convergence analysis is
done for the rate of inflation.
[1] Z. Aljinović, Z. Babić and N. T. Plazibat, Mathematica, Faculty of
Economics, University of Split, Split, 2008.
[2] A. C. Chiang, Fundamental Methods of Mathematical Economics, 3rd
ed, McGraw-Hill, Inc., New York, 1984.
[3] C. G. Gilbert, The Original Phillips Curve Estimates, Economica, Vol.
43, pp. 51-57.
[4] A. C. Harvey, Time Series Models, 2nd ed, Cambridge, MA: MIT Press.,
1993.
[5] K. Patterson, An Introduction to Applied Econometrics, a time series
approach, Palgrave, New York, 2000.
[6] S. Pivac and B. Gr─ìić, "Modification of the Phillips Curve on Example
of Croatia" Prceedings of the 6th International Conference on
Enterprise in Transition, Faculty of Economics Split, University of Split,
Split-Bol., pp 332-334. (extended abstract, full text on CD-ROM, pp
1557-1571.)
[7] S. Pivac, E. Jurun and J. Arnerić, Applied Econometrics 1, Quantitative
Finance, Faculty of Economics, University of Split, Split, 2006.
[1] Z. Aljinović, Z. Babić and N. T. Plazibat, Mathematica, Faculty of
Economics, University of Split, Split, 2008.
[2] A. C. Chiang, Fundamental Methods of Mathematical Economics, 3rd
ed, McGraw-Hill, Inc., New York, 1984.
[3] C. G. Gilbert, The Original Phillips Curve Estimates, Economica, Vol.
43, pp. 51-57.
[4] A. C. Harvey, Time Series Models, 2nd ed, Cambridge, MA: MIT Press.,
1993.
[5] K. Patterson, An Introduction to Applied Econometrics, a time series
approach, Palgrave, New York, 2000.
[6] S. Pivac and B. Gr─ìić, "Modification of the Phillips Curve on Example
of Croatia" Prceedings of the 6th International Conference on
Enterprise in Transition, Faculty of Economics Split, University of Split,
Split-Bol., pp 332-334. (extended abstract, full text on CD-ROM, pp
1557-1571.)
[7] S. Pivac, E. Jurun and J. Arnerić, Applied Econometrics 1, Quantitative
Finance, Faculty of Economics, University of Split, Split, 2006.
@article{"International Journal of Business, Human and Social Sciences:58856", author = "Zdravka Aljinović and Snježana Pivac and Boško Šego", title = "An Expectation of the Rate of Inflation According to Inflation-Unemployment Interaction in Croatia", abstract = "According to the interaction of inflation and
unemployment, expectation of the rate of inflation in Croatia is
estimated. The interaction between inflation and unemployment is
shown by model based on three first-order differential i.e. difference
equations: Phillips relation, adaptive expectations equation and
monetary-policy equation. The resulting equation is second order
differential i.e. difference equation which describes the time path of
inflation. The data of the rate of inflation and the rate of
unemployment are used for parameters estimation. On the basis of
the estimated time paths, the stability and convergence analysis is
done for the rate of inflation.", keywords = "Differencing, inflation, time path, unemployment.", volume = "3", number = "1", pages = "68-5", }