Spatial Approach to Heterogeneity of Inflation Expectations in the Euro Area

Karolina Tura-Gawron () and Magdalena Szyszko ()
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Magdalena Szyszko: WSB University in Poznan

No 6910174, Proceedings of Economics and Finance Conferences from International Institute of Social and Economic Sciences

Abstract: In this article, we examine the spatial heterogeneities in inflation expectations of the euro area consumers. We expect to find them heterogeneous in our research period of 2001-2016. Contrary to standard examination of heterogeneity, a spatial correlation analysis is applied by referring to global and local correlation measures. It is performed with the economic distance-based weights (the difference in HICP rates). Application of spatial analysis is the main contribution of our examination. Standard examinations ignore spatial relations and might be misleading. Our findings suggest that expectations are heterogeneous once the differences of inflation rates represent economic distance between the countries that we cover by our examination.

Keywords: inflation expectations; expectations heterogeneity; euro area; spatial analysis (search for similar items in EconPapers)
JEL-codes: C31 E52 E61 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2018-10
New Economics Papers: this item is included in nep-eec, nep-mac, nep-mon and nep-ure
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Published in Proceedings of the Proceedings of the 10th Economics & Finance Conference, Rome, Oct 2018, pages 525-536

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Persistent link: https://EconPapers.repec.org/RePEc:sek:iefpro:6910174

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