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An augmented P-star model of Indian inflation

Publication Type : Journal Article

Thematic Areas : Amrita Center for Economics and Governance (ACEG)

Publisher : Applied Economics, Routledge

Source : Applied Economics, Routledge, Volume 52, Issue 26, p.2795-2806 (2020)

Url : https://doi.org/10.1080/00036846.2019.1696935

Keywords : India, inflation, P-star model, structural time series modelling

Campus : Amritapuri

School : Department of Management, School of Business

Center : Amrita Center for Economics & Governance (ACEG)

Department : Department of Management

Year : 2020

Abstract : An augmented P-Star model is estimated and tested to identify the drivers of inflation in India. The model includes monetary and non-monetary factors, demand-pull and cost-push factors, and domestic as well as foreign factors. The results show that inflation in India is driven by a combination of monetary factors and non-monetary factors, some of which affect inflation on the supply side while others operate on the demand side. It turns out, however, that inflation in India is determined more by domestic rather than foreign factors.

Cite this Research Publication : P. Holzschuh, Mishra, A., Misra, J., Moosa, I. A., Shyam Nath, and Tawadros, G. B., “An augmented P-star model of Indian inflation”, Applied Economics, vol. 52, no. 26, pp. 2795-2806, 2020.

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