The impact of oil prices on products groups inflation: is the effect asymmetric?

In this paper we assess the oil price pass-through into both, the global inflation in Spain and the inflation derived from the non-deterministic prices of the standard European classification of product groups, during the period 2002-2018. To this end we fit a transfer function to inflation in each...

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Detalles Bibliográficos
Autores: Topan, Ligia Elena, Jerez Méndez, Miguel, Sotoca López, Sonia
Tipo de recurso: informe técnico
Fecha de publicación:2020
País:España
Institución:Universidad Complutense de Madrid (UCM)
Repositorio:Docta Complutense
Idioma:inglés
OAI Identifier:oai:docta.ucm.es:20.500.14352/11812
Acceso en línea:https://hdl.handle.net/20.500.14352/11812
Access Level:acceso abierto
Palabra clave:Oil price
Products groups inflation
Asymmetric effects
Transfer function.
Macroeconomía
Economía industrial
5307.14 Teoría Macroeconómica
Descripción
Sumario:In this paper we assess the oil price pass-through into both, the global inflation in Spain and the inflation derived from the non-deterministic prices of the standard European classification of product groups, during the period 2002-2018. To this end we fit a transfer function to inflation in each group, extended to allow for an asymmetry in the transmission of positive/negative oil cost shocks, that is, a “rockets and feathers effect”. Our results show that most often there is a significant asymmetry, which can be explained by the degree of competition in each market.