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Analysis of the inflation structure of Spanish regions:The Ball and Mankiw methodology

Author

Listed:
  • Caraballo, María Ángeles
  • Usabiaga, Carlos

    (Universidad Pablo de Olavide)

Abstract
In this paper we analyze the incidence of the distribution of price changes on the inflation rate of Spanish regions (1994-2001).Especially,we pay attention to the role of variability and skewness.The methodology applied is based on the menu cost models developed by Ball and Mankiw.In general,we conclude that the behaviour of the regions is very homogeneous with respect to the «structure » of inflation.The significance of variability and skewness also shows the vulnerability of inflation to relative price shocks.

Suggested Citation

  • Caraballo, María Ángeles & Usabiaga, Carlos, 2004. "Analysis of the inflation structure of Spanish regions:The Ball and Mankiw methodology," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 5, pages 67-90.
    • Handle: RePEc:ris:invreg:0178
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    More about this item

    Keywords

    Inflation; distribution of price changes; variability; skewness; kurtosis;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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