Theoretical and Applied Economics
No. 2 / 2018 (615), Summer
Inflation unemployment dynamics in Hungary – A structured cointegration and vector error correction model approach
Szent Istvan University, Godóllö, Hungary
Maria FEKETE FARKAS
Szent Istvan University, Godóllö, Hungary
Florence JEESON
St. Michael’s College, Cherthala, Alappuzha, India
Abstract. This paper is an attempt to investigate the existence of long run dynamics between inflation and unemployment in Hungary through a structured cointegration approach and vector error correction model. Using the monthly data of inflation and unemployment in Hungary, this study shows the presence of a long-term relationship between inflation and unemployment. The cointegration test results prove the existence of a long run dynamics between these variables and the vector error correction model depicts that the variables would adjust to long run equilibrium path quickly in case of short run disturbances to the model. The results stand in contrast with the cases of many of the developed countries like USA where recent studies proved that the long run relationships between these two variables are vanishing.
Contents
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Corruption, governments’ debts, trade, and global growth
Innovation – trends and patterns at Romanian firms
How to build an economy free of recession and stagnation: results from a multi-commodity macro model
Analyzing the employment rate of the population, unemployment and vacancies in the economy
An implicit model of adjustment costs in differential input demand systems
Diversity and proportionality, challenges or opportunities for the European banking sector?
A competitive economy as the path to future prosperity: Comparative analysis of selected European countries
Studying the political economy of reforms: The Greek case, 2010-2017
Analysis of the evolution of the number of pensioners and pensions in Romania
Inflation unemployment dynamics in Hungary – A structured cointegration and vector error correction model approach
Are defence expenditures the reasons of foreign debts in Turkey?
Exports, imports and economic growth in India: Evidence from cointegration and causality analysis
The role of economic growth and energy consumption on CO2 emissions in E7 countries
Which comes first – savings or growth? Time series evidence from ECOWAS countries