Author
Ceylan, Özcan
Publication Date
2020-06-01
Publication Place
-
IGI Global
Type
Book
Language
English
Digital
Yes
Manuscript
No
Library
Özyeğin University
Library Asset ID
978-179981095-7
Record ID
b97e653d-089a-4ecf-9537-894b14b5ee66
Library Location
Hotel Management
Date
2020-06-01
Sample Text
The relation between the Producer Prices Index (PPI) and the Consumer Price Index (CPI) in the U.S. is analyzed for two sub-periods: one spanning from 1947 to 1982, the post-war period marked by demand-side economic policies, and the other one starting by 1983 when supply-side policies pioneered by the Reagan government came into effect. As the series in question are found to be cointegrated, a Vector Error Correction Model is employed for the analysis. Regarding the longrun equilibrium relationships, it is found that the loading for the PPI series are statistically significant for both periods, while the loading for the CPI is barely significant for the first period, and it is insignificant at any acceptable level for the second. Thus, the CPI represents the common trend in the system in both periods, but it does more clearly so in the second period.
DOI
10.4018/978-1-7998-1093-3.ch002
