Are Inflation Rates Stationary in 11 Mediterranean Countries? Evidence from Univariate and Panel Unit Root Tests

Authors

  • Burcu OZCAN Firat University

Keywords:

Inflation, Monetary Policy, Stationarity, Unit Root, Structural Breaks

Abstract

In this study, we employ unit root tests that allow for heterogeneous structural breaks developed by Lee and Strazicich (2003), Narayan and Popp (2010), and Im et al. (2010) to examine the stationarity of inflation rates in 11 Mediterranean countries over the period 1960-2011. The empirical findings support the stationarity of inflation rates when structural breaks are allowed. Thus, most shocks to inflation rates appear to be temporary and inflation rates show mean reversion. In addition, the results indicate some important policy implications.

Published

14-10-2019

How to Cite

OZCAN, B. (2019). Are Inflation Rates Stationary in 11 Mediterranean Countries? Evidence from Univariate and Panel Unit Root Tests. Eurasian Journal of Business and Economics, 6(12), 79-96. Retrieved from https://ejbe.org/index.php/EJBE/article/view/116

Issue

Section

Articles