Propagation of inflationary shocks in Costa Rica

Abstract We present an estimation of propagation effects of inflationary shocks to groups and specific products of the CPI using a SVAR framework.  We found significant propagation effects for 6 out of the 12 groups of the CPI, which together account for 72% of the basket.  These groups include...

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Detalles Bibliográficos
Autores principales: Editorial de la Universidad Nacional (EUNA). Banco Central de Costa Rica (BCCR), Rodríguez Vargas, Adolfo; Banco Central de Costa Rica
Formato: Artículo publishedVersion
Lenguaje:Español
Publicado: Universidad Nacional - Escuela de Economía 2013
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Acceso en línea:http://www.revistas.una.ac.cr/index.php/economia/article/view/5122
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=cr/cr-008&d=article5122oai
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Sumario:Abstract We present an estimation of propagation effects of inflationary shocks to groups and specific products of the CPI using a SVAR framework.  We found significant propagation effects for 6 out of the 12 groups of the CPI, which together account for 72% of the basket.  These groups include those related to food, home apparel and housekeeping services and transportation. The estimations suggest that shocks to Food and Non-Alcoholic Beverages and to fuels are passed through entirely to the rest of the CPI basket. The majority of the most important propagation effects occur between 6 and 10 months after the shocks.  This includes propagation effects stemming from shocks to fuels, products with regulated price, tradables and the IPPI index.