EconPapers    
Economics at your fingertips  
 

The Phillips Curve for the Romanian Economy, 1992-2017

Dorin Jula () and Nicoleta Jula
Additional contact information
Nicoleta Jula: Department of Finance, University of Ilorin, Kwara State, Nigeria

Computational Methods in Social Sciences (CMSS), 2017, vol. 5, issue 1, 36-48

Abstract: The paper analyses the relationship between the unemployment rate and inflation, in Romania, during the 1992 – 1997 (March) period. For this purpose, we have estimated two econometric models, where the inflation trend has considered as a benchmark for inflation dynamics and the unemployment gap was built after applying the Hodrick-Prescott (HP) filter at unemployment rate. We have found that the unemployment gap had the greatest relevance in inflation model if we have taken a four months delay. The data support the hypothesis of a significant relationship between inflation and unemployment, with the shape described by the Phillips curve, namely the coefficients of unemployment gap were negative, econometrically significant and comparable as dimension in both models of inflation dynamics. We have calculated that the coefficient of unemployment gap is -0.344 in the Phillips curve model where the errors follow an ARMA(2, 2) process and -0.386 in the model which includes the inflation inertia., 36-48

Keywords: Phillips curve; inflation; unemployment; Romanian economy. (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://cmss.univnt.ro/wp-content/uploads/vol/split ... _issue_1_art.004.pdf First version, 2017 (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:ntu:ntcmss:vol5-iss1-17-36

Access Statistics for this article

Computational Methods in Social Sciences (CMSS) is currently edited by Bogdan Oancea

More articles in Computational Methods in Social Sciences (CMSS) from "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences Contact information at EDIRC.
Series data maintained by Stefan Ciucu ().

 
Page updated 2017-09-29
Handle: RePEc:ntu:ntcmss:vol5-iss1-17-36