Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/144325
Authors: 
Aucremanne, Luc
Collin, Marianne
Stragier, Thomas
Year of Publication: 
2007
Series/Report no.: 
Working Paper Research 112
Abstract: 
We find strong econometric support for a break in the relationship between perceived and HICP inflation in the euro area, triggered by the introduction of euro notes and coins in January 2002. The break is fairly homogeneous across individuals with different socio-economic characteristics. We found no support for the thesis according to which perceptions are systematically formed by frequently purchased products. A similar break is found when national CPIs instead of HICPs are used as benchmarks. The role of the non-inclusion of owner-occupied housing in the HICP was negligible. Therefore the credibility of the HICP per se is not at stake.
Subjects: 
inflation
perceived inflation
panel unit roots tests
JEL: 
C22
C23
D12
E31
Document Type: 
Working Paper

Files in This Item:
File
Size
381.73 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.