Article ID Journal Published Year Pages File Type
5061124 Economics Letters 2010 4 Pages PDF
Abstract

It is widely perceived that relative prices are more dispersed in periods of price decreases than in periods of price increases. We show that the asymmetry results from misspecifying the true, U-shaped, underlying model with a piecewise linear regression model.

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Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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Is there any asymmetry in the effect of inflation on relative price variability?
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