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The distribution of consumer price changes in the UK

The distribution of consumer price changes in the UK
The distribution of consumer price changes in the UK
This paper rejects the hypothesis that relative commodity price changes are normally distributed using monthly UK data from 1962 to 1983. The presence of skewness in the distribution of price changes across commodities suggests that the Asymmetric Price Response Hypothesis may be a good description of the relation between the moments of the distribution of price changes. We use Granger causality tests to investigate this hypothesis, but it is not supported by the data. We also examine the major time-series features of the individual price series.
0013-0427
249-262
Mizon, Grayham E.
2b8353b4-0af4-48db-b552-6867dc1f4583
Safford, J. Claire
52c74645-60a7-46fd-8b52-d32f056a2650
Thomas, Stephen H.
a93cfe4e-b533-48ff-b1c1-2e0d4e3bf448
Mizon, Grayham E.
2b8353b4-0af4-48db-b552-6867dc1f4583
Safford, J. Claire
52c74645-60a7-46fd-8b52-d32f056a2650
Thomas, Stephen H.
a93cfe4e-b533-48ff-b1c1-2e0d4e3bf448

Mizon, Grayham E., Safford, J. Claire and Thomas, Stephen H. (1990) The distribution of consumer price changes in the UK. Economica, 57 (226), 249-262.

Record type: Article

Abstract

This paper rejects the hypothesis that relative commodity price changes are normally distributed using monthly UK data from 1962 to 1983. The presence of skewness in the distribution of price changes across commodities suggests that the Asymmetric Price Response Hypothesis may be a good description of the relation between the moments of the distribution of price changes. We use Granger causality tests to investigate this hypothesis, but it is not supported by the data. We also examine the major time-series features of the individual price series.

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Published date: 1990

Identifiers

Local EPrints ID: 37394
URI: http://eprints.soton.ac.uk/id/eprint/37394
ISSN: 0013-0427
PURE UUID: ef685b9b-d2e6-4669-a333-9c448d75f2f9

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Date deposited: 23 Apr 2007
Last modified: 11 Dec 2021 15:36

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Contributors

Author: Grayham E. Mizon
Author: J. Claire Safford
Author: Stephen H. Thomas

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