Table 3.
Estimates of the structuralist model of inflation
| (1) | (2) | |
|---|---|---|
| OLS | GMM-IV | |
| Relative price (growth rate) | 0.306** | 0.340** |
| (5.74) | (4.29) | |
| Oil price (growth rate) | 0.0380** | 0.0390** |
| (3.40) | (7.32) | |
| Lagged inflation | 0.399** | 0.446** |
| (5.57) | (19.03) | |
| q1 | 0.0117** | 0.0140** |
| (3.22) | (6.07) | |
| q2 | 0.0191** | 0.0178** |
| (5.19) | (8.05) | |
| q3 | 0.00646* | 0.00647** |
| (2.03) | (6.17) | |
| Constant | − 0.00201 | − 0.00356** |
| (− 0.75) | (− 3.43) | |
| Observations | 95 | 87 |
| Adjusted R2 | 0.616 | 0.686 |
| Hansen’s J (χ2) | 1.543 | |
| p value | 0.672 |
Dependent variable is CPI inflation; period is 1996–97(Q1) to 2020–21(Q1)
(1) t statistics in parentheses
(2) ** and * indicate significance at the 1 and 5% level, respectively
(3) q1 … q3 are quarterly dummies