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Inflation Convergence between Germany and Greece, Italy, Spain, Sweden, Turkey: A co-integration Analysis
Dalarna University, School of Technology and Business Studies, Economics.
2007 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

This paper looks for evidence of co-integration to the German inflation rate between the countries Greece, Italy, Spain, Sweden and Turkey. The method applied is based on econometrics since some certain statistical tests need to be performed to obtain more accurate results. The main tests used are Dickey-Fuller and Augmented version of this test which is vital to test for unit-root and co-integration in this paper. Since the data need to be stationary to perform the analysis in this paper, second difference and the deseasonalisation methods are also used for this purpose. Deseasonalisation method helps this paper progress in two means; to determine the months which have seasonal effect and to form another model with the help of the seasonal months, to obtain stationary series. Finally the original co-integration model is then tested again after deseaonalisation with Dickey-Fuller and Augmented Dickey-Fuller tests. After the tests, I found evidence that Greece, Italy, Sweden, and Turkey are co-integrating with German inflation rate whereas there is no evidence for Spain.

Place, publisher, year, edition, pages
2007.
National Category
Economics
Identifiers
URN: urn:nbn:se:du-35864OAI: oai:DiVA.org:du-35864DiVA, id: diva2:1522516
Available from: 2021-01-26 Created: 2021-01-26 Last updated: 2025-10-09Bibliographically approved

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • chicago-author-date
  • chicago-note-bibliography
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf