Oil Price and Inflation in Iran: Non-Linear ARDL Approach

Authors

  • Hamid Davari
  • Alireza Kamalian

Abstract

In this paper we study the relationship between oil price (or revenue) changes and inflation rate in Iran seasonally in 2003-2015. Method of the study was able to identify asymmetry of oil price and inflation which is recognized as nonlinear autoregressive distributed lag model. Estimated model clarified nonlinear effect of oil price on inflation. Clearly, we found out that there was significant relationship between the reduction in oil price and inflation growth while there was no significant relationship between increase in oil price growth and inflation rate.Keywords: inflation behavior, oil price, asymmetryJEL Classifications: E31, Q4

Downloads

Download data is not yet available.

Downloads

Published

2018-05-08

How to Cite

Davari, H., & Kamalian, A. (2018). Oil Price and Inflation in Iran: Non-Linear ARDL Approach. International Journal of Energy Economics and Policy, 8(3), 295–300. Retrieved from https://econjournals.com.tr/index.php/ijeep/article/view/6504

Issue

Vol. 8 No. 3 (2018)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.