THE BEHAVIOR OF PRICES AS A RESPONSE TO STRUCTURAL CHANGES - THE ROLE OF THE ECONOMIC TRANSMISSION MECHANISMS IN EXPLAINING THE OBSERVED BEHAVIOR

Andrei Dospinescu ()

Romanian Journal of Economics, 2012, vol. 35, issue 2(44), 201-217

Abstract: The paper analyzes the impact of structural variables on prices by building a model based on a system of difference equations. The main contribution of the paper is the formulation and testing of a hypothesis regarding the relation between the changes in the trajectories of prices as a result of the changes in the structural variables and the pattern of the economic transmission mechanisms. The hypothesis was verified, indicating that there are unique characteristics of the transmission mechanisms and of the relations between them that differentiate the high volatility behavior of prices from the low volatility behavior.

Keywords: transmission mechanisms; system of difference equations; Pearson and Spearman correlations; structural variables (search for similar items in EconPapers)
JEL-codes: C15 C63 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.revecon.ro/articles/2012-2/2012-2-13.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ine:journl:v:2:y:2012:i:44:p:201-217

Access Statistics for this article

Romanian Journal of Economics is currently edited by Institute of National Economy

More articles in Romanian Journal of Economics from Institute of National Economy Contact information at EDIRC.
Bibliographic data for series maintained by Valentina Vasile ().