The relationship between inflation and growth: a panel smooth transition regression approach for developed and developing countries

Ibarra, Raúl; Trupkin, Danilo

dc.rights.license	Attribution-NonCommercial-NoDerivatives 4.0 Internacional	*
dc.contributor.author	Ibarra, Raúl
dc.contributor.author	Trupkin, Danilo
dc.date.accessioned	2022-03-21T19:14:53Z
dc.date.available	2022-03-21T19:14:53Z
dc.date.issued	2011	es
dc.identifier.uri	https://hdl.handle.net/20.500.12806/1317
dc.description.abstract	This paper studies the existence for a set of countries of an inflation threshold above which its effect on economic growth is negative, considering the speed of transition from one inflation regime to the other. Using a panel data set of above 120 countries for the period after the Second World War, we apply a panel smooth transition regression (PSTR) model with fixed effects. The estimated threshold of the inflation rate for industrialized countries is 4.1%, while for non-industrialized countries the threshold is 19.1%. The speed of transition is relatively smooth in the first group, but for developing economies inflation rapidly has negative effects on growth when it is near the threshold. In addition, we find that the inflation threshold falls to 7.9% by selecting a reduced group of developing countries, according to a measure associated with institutional quality.	es
dc.format.extent	23 p.	es
dc.format.mimetype	application/pdf	es
dc.language	eng	es
dc.publisher	Universidad de Montevideo, Facultad de Ciencias Empresariales y Economía, Departamento de Economía	es
dc.relation.ispartof	Documentos de trabajo del Departamento de Economía; UM_CEE_2011_07	es
dc.rights	Abierto	es
dc.rights.uri	http://creativecommons.org/licenses/by-nc-nd/4.0/	*
dc.subject	Inflation	es
dc.subject	Economic growth	es
dc.subject	Treshold effects	es
dc.subject	Smooth transition	es
dc.title	The relationship between inflation and growth: a panel smooth transition regression approach for developed and developing countries	es
dc.type	Documento de trabajo	es
dc.contributor.filiacion	Ibarra, Raúl. Banco de México	es
dc.contributor.filiacion	Trupkin, Danilo. Universidad de Montevideo, Uruguay	es
dc.type.version	Publicada	es