Nonparametric and semiparametric evidence on the long-run effects of inflation on growth

Andrea Vaona (1) , Stefano Schiavo (2)

1 Department of Economics
2 OFCE - Observatoire français des conjonctures économiques (Sciences Po)

In this paper we adopt both a nonparametric and a semi- parametric IV estimator to show that the relationship between inflation and output growth is non-linear and that there exists a threshold level below which inflation has no effects on growth.

Keywords: inflation; Growth

Domains: Humanities and Social Sciences; Economics and Finance

Andrea Vaona, Stefano Schiavo. Nonparametric and semiparametric evidence on the long-run effects of inflation on growth. 2006. ⟨hal-01065641⟩