Applying Semi-parametric and Wavelets Methods to Study Persistent Rate of Inflation in Iran

Subject Areas : Labor and Demographic Economics

Ahma Jafari Samimi ¹ ( استاد اقتصاد دانشگا مازندران )
Roozbeh Baloonejad ² ( دانشجوی دکتری اقتصاد مازندران )

Received: 2015-04-11 Accepted : 2015-04-11 Published : 2013-04-01

Keywords: ARFIMA, Inflation Persistence, Semi-parametric Methods, Wavelets, inflation rate,

Abstract :

In this study, the existence of inflation persistent rate is examined in Iran. For this purpose, the degree of fractional integration is estimated by using GPH, Robinson adjustment, Reisen, Whittle, wavelets methods and consumer price index data of Central Bank during 1972-2010. The results indicate a persistent rate of inflation in Iran. The stationary and persistence of inflation rate indicates that, by a shock in inflation rate, its effects remains for a long time. This may be considered by economic decision-makers to select appropriate policies.

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