Naslov
The Convergence Analysis of Inflation and Unemployment Rates

Autori
Pivac, Snježana ; Aljinović, Zdravka ; Ivčević, Maja

Izvornik
The business review, Cambridge (1553-5827) 12 (2009), 2; 178-185

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
inflation; unemployment; differential and difference equations; VAR; convergence analysis

Sažetak
In the paper the time paths of the Croatian rates of inflation and unemployment are estimated. The model is based on three first-order differential i.e. difference equations and on the adaptive expectation hypothesis, what results with second-order differential i.e. difference equations for each variable. The data of the rate of inflation and the rate of unemployment are used for parameters estimation, while the expected rate of inflation are estimated by VAR model. The parameters of adaptive-expectations equations are estimated by standard methods. On the basis of the estimated time paths the stability and convergence analysis is done for the rate of inflation and the unemployment rate.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA