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Re-examining the threshold effects in the inflation-growth nexus with cross-sectionally dependent non-linear panel: Evidence from six industrialized economies

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dc.contributor.author Omay, Tolga
dc.contributor.author Kan, Elif Öznur
dc.date.accessioned 2016-06-13T08:30:24Z
dc.date.available 2016-06-13T08:30:24Z
dc.date.issued 2010-09
dc.identifier.citation Omay, T. Kan, E.Ö. (2010). Re-examining the threshold effects in the inflation-growth nexus with cross-sectionally dependent non-linear panel: Evidence from six industrialized economies. Economic Modelling, 27(5), 996-1005. http://dx.doi.org/10.1016/j.econmod.2010.04.011 tr_TR
dc.identifier.issn 0264-9993
dc.identifier.uri http://hdl.handle.net/20.500.12416/1081
dc.description.abstract This paper analyzes the empirical relationship between inflation and output growth using a novel panel data estimation technique, Panel Smooth Transition Regression (PSTR) model, which takes account of the non-linearities in the data. By using a panel data set for 6 industrialized countries that enable us to control for unobserved heterogeneity at both country and time levels, we find that there exists a statistically significant negative relationship between inflation and growth for the inflation rates above the critical threshold level of 2.52%, which is endogenously determined. Furthermore, we also control cross-section dependency by using the CD test modified to non-linear context and remedy cross-section dependency with Seemingly Unrelated Regression Equations through Generalized Least Squares (SURE-GLS) and newly proposed Common Correlated Effects (CCE) estimation techniques. We find that these methods change the critical threshold value slightly. The estimated threshold values from these estimation methods are 3.18% and 2.42%, respectively. (C) 2010 Elsevier B.V. All rights reserved tr_TR
dc.language.iso eng tr_TR
dc.publisher Elsevier Science Bv tr_TR
dc.relation.isversionof 10.1016/j.econmod.2010.04.011 tr_TR
dc.rights info:eu-repo/semantics/closedAccess
dc.subject Inflation tr_TR
dc.subject Growth tr_TR
dc.subject Threshold Effects tr_TR
dc.subject Panel Smooth Transition Model tr_TR
dc.subject Cross-section Dependency tr_TR
dc.subject Common Correlated Effects tr_TR
dc.title Re-examining the threshold effects in the inflation-growth nexus with cross-sectionally dependent non-linear panel: Evidence from six industrialized economies tr_TR
dc.type article tr_TR
dc.relation.journal Economic Modelling tr_TR
dc.identifier.volume 27 tr_TR
dc.identifier.issue 5 tr_TR
dc.identifier.startpage 996 tr_TR
dc.identifier.endpage 1005 tr_TR
dc.contributor.department Çankaya Üniversitesi, Meslek Yüksek Okulu tr_TR


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