University of Tehran Journal of Economic Research (Tahghighat- E- Eghtesadi) 0039-8969 50 3 2015 10 23 Inflation Persistence in Iran: A Bootstrapping Approach Inflation Persistence in Iran: A Bootstrapping Approach 707 732 55809 10.22059/jte.2015.55809 FA Firouz Fallahi Associate Professor in Economics, Faculty of Economics, Management, and Business, University of Tabriz, Tabriz, Iran Journal Article 2014 10 19 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. 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. https://jte.ut.ac.ir/article_55809_cef98f91b1d0588d27793c9e8a5558be.pdf