Comparing the measures of core inflation in India: trimmed mean and structural vector auto-regression approach Online publication date: Wed, 25-Feb-2015
by Arundhati Mallick; Narayan Sethi
International Journal of Monetary Economics and Finance (IJMEF), Vol. 7, No. 4, 2014
Abstract: This paper estimates core inflation through trimmed mean method and structural vector auto-regression (SVAR) method by using monthly data of wholesale price index (WPI) and index of industrial production (IIP) from April 2005 to March 2014 for India. In this paper, we have compared 25% trimmed mean and SVAR method and it was found that SVAR measure provides better results than trimmed mean method. In SVAR method, we found the exact movements of core and non-core shocks in impulse response functions and variance decomposition. It is based on the definitions of core inflation but trimmed mean method excludes the outliers in the price index, whereas SVAR method is difficult to estimate.
Online publication date: Wed, 25-Feb-2015
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Monetary Economics and Finance (IJMEF):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email firstname.lastname@example.org