Inflationary Expectations in Israel
A Multiple Indicators Approach
Bibliographic Data
| ID | 19419952 |
|---|---|
| Authors | Daniel Gottlieb (0000-0002-0555-6185), Rafi Melnick (Hebrew University of Jerusalem), Sylvia Piterman |
| Year | 1985 |
| Volume | 3 |
| Issue | 2 |
| Pages | 112-117 |
| Publication date | 1985-04-01 |
| 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 | 10.1080/07350015.1985.10509438 |
| OpenAlex | W1987475461 |
| Language | EN |
| Citations received | 2 |
| References cited | 8 |
This article derives unobservable short-term inflationary expectations in Israel from their postulated effects on the velocity of demand deposits and the nominal interest rate. A multiple-indicators model is estimated to assess the impact of inflationary expectations on these variables. The expectations-formation mechanism is estimated using a multiple indicators–multiple causes (MIMIC) model. This methodology allows us to test for the structural stability of the model and estimate the relative variances of the postulated error components. Moreover, this procedure contains a built-in specification test of the chosen expectations-formation mechanism
Econometrics · Economics · Rational expectations · Specification · Unobservable · Banking stability, regulation, efficiency · Computer Science · Economic Theory and Policy · Monetary Policy and Economic Impact
| Citations per year | 0.05 |
|---|---|
| Citation span | 1987 - 1990 (4) |
| Highly cited | No |