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Journals / Gazi University Journal of Science / 2016 / Cilt: 29 - Sayı: 2

DETERMINING RELATIVE WEIGHTS OF INFLATION UNCERTAINTY IN TURKEY VIA CPI AND ITS COMPONENTS

Pınar Göktaş
Ali Çımat
Pages
343–363
Publication Date
2016-06-20
DOI
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

Contrary to expectations, it was revealed that the expenditure group having the greatest impact on inflation uncertainty is not “food, beverage and tobacco” expenditure group but “transportation”.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:This study aims to investigate the interaction of main expenditures groups of CPI with the fluctuations taking place at the level of general prices and calculate the relative weights of theirs uncertainties within inflation uncertainty.
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Key Findings & Data:Since there might be structural breaks in the investigated variables, Bai-Perron test, GARCH-type models are constructed by including the breaks in the fluctuation measurement and ARDL approach has been used to determine the long-term relationship between the variables.
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Conclusion & Impact:Contrary to expectations, it was revealed that the expenditure group having the greatest impact on inflation uncertainty is not “food, beverage and tobacco” expenditure group but “transportation”.
🔬Design:Modeling & Simulation
📍Scope:Comprehensive Sample
⚙️Variables:GARCH-type models with multiple structural breaks · Bai-Perron method · Inflation uncertainty

Abstract

This study aims to investigate the interaction of main expenditures groups of CPI with the fluctuations taking place at the level of general prices and calculate the relative weights of theirs uncertainties within inflation uncertainty. Since there might be structural breaks in the investigated variables, Bai-Perron test, GARCH-type models are constructed by including the breaks in the fluctuation measurement and ARDL approach has been used to determine the long-term relationship between the variables. Contrary to expectations, it was revealed that the expenditure group having the greatest impact on inflation uncertainty is not “food, beverage and tobacco” expenditure group but “transportation”.

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Cite This Article

Göktaş, P., Çımat, A. (2016). DETERMINING RELATIVE WEIGHTS OF INFLATION UNCERTAINTY IN TURKEY VIA CPI AND ITS COMPONENTS. Gazi University Journal of Science, Cilt: 29 - Sayı: 2, 343–363. https://ajindex.com/articles/255448

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