El Intercambio entre Inflacion y Producto: Evidencia Empirica para Venezuela

Victor, Olivo (2005): El Intercambio entre Inflacion y Producto: Evidencia Empirica para Venezuela.

Abstract

Many researchers have explored the implications of Lucas’ misperception model. Arguably, the most important implication of this model is that the slope of the aggregate supply curve depends on the variability of nominal shocks. This paper examines this insight from Lucas’ model using annual data of the Venezuelan economy for the period 1951-2004. The motivation for this research is the perception that since the increase in oil prices in the mid 70s, Venezuelan policymakers have insisted in stimulating the economy applying systematically very expansive fiscal and monetary policies. The results obtained indicate that for the period analyzed, Lucas’s hypothesis explains fairly well why the trade-off between inflation and output has tended to disappear in the Venezuelan economy, as nominal shocks has increased in size and variability.

• Item Type: MPRA Paper
• English Title: The Trade-off between Inflation and Output: Empirical Evidence for Venezuela
• Language: Spanish
• Keywords: Output, inflation, trade-off, nominal shocks, monetary policy, fiscal policy, variability
• Subjects: E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes

References

Bibliografía y Referencias

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-Hoover Kevin, 1988. The New Classical Macroeconomics: A Skeptical Inquiry. Blackwell Publishers.

-Lucas Robert, 1973. Some International Evidence on Output-Inflation Tradeoffs. The American Economic Review, Vol. 63, No. 3, (junio).

-Miller Stephen; Nicholas Apergis, 2004. Macroeconomic Rationality and Lucas´s Misperception Model: Further Evidence from Forty-One Countries. Journal of Economics and Business, (Mayo – junio).