TY - JOUR ID - 55809 TI - Inflation Persistence in Iran: A Bootstrapping Approach JO - Journal of Economic Research (Tahghighat- E- Eghtesadi) JA - JTE LA - en SN - 0039-8969 AU - Fallahi, Firouz AD - Associate Professor in Economics, Faculty of Economics, Management, and Business, University of Tabriz, Tabriz, Iran Y1 - 2015 PY - 2015 VL - 50 IS - 3 SP - 707 EP - 732 KW - Inflation Persistence KW - Mean Reversion KW - Unit Root KW - Bootstrap KW - Confidence Interval DO - 10.22059/jte.2015.55809 N2 - Using quarterly data from 2002:1 to 2013:2 we study the persistence in the inflation rates in Iran based on the total CPI and the CPI in 12 subgroups. The persistence is investigated using two different tools: (i) the ADF unit root test and (ii) bootstrap confidence intervals. We calculate a 90% confidence interval for the sum of the autoregressive coefficients, as a measure of persistence, using the grid bootstrap approach proposed by Hansen (1999). The results show no sign of persistence in the following five subgroups: Communications; the Food and Beverages; Food; Goods; and Transportation. On the other hand, the total inflation rate based on CPI and inflation in the Cloth, Education, Health, Recreation, and Shelter subgroups support the inflation persistence. For the remaining two subgroups, the results are mixed and inconclusive. UR - https://jte.ut.ac.ir/article_55809.html L1 - https://jte.ut.ac.ir/article_55809_743e9bdb16a03ae0e309bfa73d344feb.pdf ER -