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Inflation Bias after the Euro: Evidence from the UK and Italy

[journal article]

Scaramozzino, Pasquale; Marini, Giancarlo; Piergallini, Alessandro

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Abstract This paper presents an indirect approach to investigate the possible existence of measurement error bias in the Harmonized Index of Consumer Prices for the UK and Italy. Our empirical results show that there is no significant evidence of a bias for the UK, nor for Italy prior to the introduction of the Euro. Since January 2002, however, the inflation rate in Italy has been underestimated by at least 6 percentage points.
Document language English
Publication Year 2007
Page/Pages p. 461-470
Journal Applied Economics, 39 (2007) 4
DOI http://dx.doi.org/10.1080/00036840500438962
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)
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