Remember Me
Or use your Academic/Social account:


You have just completed your registration at OpenAire.

Before you can login to the site, you will need to activate your account. An e-mail will be sent to you with the proper instructions.


Please note that this site is currently undergoing Beta testing.
Any new content you create is not guaranteed to be present to the final version of the site upon release.

Thank you for your patience,
OpenAire Dev Team.

Close This Message


Verify Password:
Verify E-mail:
*All Fields Are Required.
Please Verify You Are Human:

OpenAIRE is about to release its new face with lots of new content and services.
During September, you may notice downtime in services, while some functionalities (e.g. user registration, login, validation, claiming) will be temporarily disabled.
We apologize for the inconvenience, please stay tuned!
For further information please contact helpdesk[at]openaire.eu

fbtwitterlinkedinvimeoflicker grey 14rssslideshare1
Bjørnland, Hilde Christiane (1997)
Publisher: Statistics Norway, Research Department
Languages: English
Types: Research
Subjects: JEL classification: E31, Prisvekst, United Kingdom, Core inflation; inflation target; long-run neutrality; oil price shocks; imported inflation; structural VAR., Inflasjon, Structural vector, Inflation, JEL classification: E61, Oljepriser, Imported inflation, JEL classification: C32, :Social science: 200::Economics: 210::Economics: 212 [VDP], Oil price, Norway
jel: jel:E31, jel:C32, jel:E61
This paper calculates core inflation, by imposing long run restrictions on a structural vector autoregression (VAR) model containing the growth rate of output, inflation and oil prices. Core inflation is identified as that component in inflation that has no long run effect on output. No restrictions are placed on the response of output and inflation to the oil price shocks. The analysis is applied to Norway and the United Kingdom, both oil producing OECD countries. A model that distinguishes between domestic and imported inflation, is also specified for Norway. In both countries, core inflation is a prime mover of CPI (RPI) inflation. However, CPI (RPI) inflation overvalues or undervalues core inflation in many periods, of which oil price shocks are important sources behind this deviation for prolonged periods Keywords: Core inflation, inflation target, long-run neutrality, oil price shocks, imported inflation, structural VAR.
  • The results below are discovered through our pilot algorithms. Let us know how we are doing!

    • I. Svendsen (1995): Forward- and Backward Looking Models for Norwegian Export Prices R. Barrell and K. A. Magnussen (1996): Counterfactual Analyses of Oil price Shocks using a World Model E. Bowitz and S. I. Hove (1996): Business cycles and fiscal policy: Norway 1973-93 E. Berg, S. Kverndokk and K.E. Rosendahl (1996): Gains from Cartelisation in the Oil Market B. Bye (1996): Taxation, Unemployment and Growth: Dynamic Welfare Effects of "Green" Policies E. Bowitz and Å. Cappelen (1997): Incomes Policies and the Norwegian Economy 1973-93 S. Glomsrød, M.D Monge A. and H. Vennemo (1997): Structural Adjustment and Deforestation in Nicaragua
  • No related research data.
  • No similar publications.

Share - Bookmark

Cite this article

Cookies make it easier for us to provide you with our services. With the usage of our services you permit us to use cookies.
More information Ok