| ID | 117923 |
| Title Proper | Oil price shocks and producer prices in Taiwan |
| Other Title Information | an application of non-linear error-correction models |
| Language | ENG |
| Author | Chou, Kuo-Wei ; Lin, Po-Chun |
| Publication | 2013. |
| Summary / Abstract (Note) | This study estimated the short-term and long-term pass-through effects of oil prices on inflation in Taiwan from 1981M1-2011M5, employing the producer price general index and various basic sub-indices for evaluation. The empirical results show that oil prices have long-term and short-term pass-through effects on Taiwan's producer price indices. Moreover, producer prices have significant non-linear error-correction relationships with the oil price, output and wages, suggesting asymmetric and time-variant properties of error correction. When the deviation of price in the equilibrium is greater, the error-correction adjustment will be faster. Our findings could therefore enable the monetary authorities and manufacturers to formulate a more effective policy from the oil price shocks. |
| `In' analytical Note | Journal of Chinese Economics and Business Studies Vol. 11, No. 1; Feb 2013: p.59-72 |
| Journal Source | Journal of Chinese Economics and Business Studies Vol. 11, No. 1; Feb 2013: p.59-72 |
| Key Words | Oil Prices ; PPI Inflation ; Pass - Through ; Non - Linear Error Correction ; Augmented Phillips Curve |