Structural Estimates of the U.S. Sacrifice Ratio
Bibliographic Data
| ID | 19419014 |
|---|---|
| Authors | Stephen G Cecchetti (Federal Reserve), Robert W Rich (0000-0002-2482-072X, Federal Reserve Bank of New York) |
| Year | 2001 |
| Volume | 19 |
| Issue | 4 |
| Pages | 416-427 |
| Publication date | 2001-10-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Business and Economic Statistics (JOURNAL) |
| Journal identifiers | ISSN: 0735-0015 • E-ISSN: 1537-2707 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1198/07350010152596664 |
| OpenAlex | W3121450656 |
| Language | EN |
| Citations received | 3 |
| References cited | 10 |
This article investigates the statistical properties of the U.S. sacrifice ratio--the cumulative output loss arising from a permanent reduction in inflation. We derive estimates of the sacrifice ratio from three structural vector autoregression models and then conduct a series of simulation exercises to analyze their sampling distribution. We obtain point estimates of the sacrifice ratio that are consistent with results reported in earlier studies. However, the estimates are very imprecise, which we suggest reflects the poor quality of instruments used in estimation. We conclude that the estimates provide a very unreliable guide for assessing the output cost of disinflation policy
Confidence interval · Disinflation · Econometrics · Economics · Geography · Inflation rate · Keynesian economics · Monetary policy · Monte Carlo method · Physics · Point estimation · Sacrifice · Statistics · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Mathematics · Monetary Policy and Economic Impact
Tests for Parameter Instability and Structural Change With Unknown Change Point
Optimal Tests when a Nuisance Parameter is Present Only Under the Alternative
Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root
Structural Models of the Liquidity Effect
Instrument Relevance in Multivariate Linear Models
| Citations per year | 0.2 |
|---|---|
| Citation span | 2011 - 2021 (11) |
| Highly cited | No |