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Iranian inflation: peristence and structural breaks

  • Luis A. Gil-Alana
  • Yadollah Dadgar
  • Rouhollah Nazari
Article

Abstract

This paper investigates the behavior of the inflation rate in Iran for the time period 1992–2017 using fractional integration. The results indicate an extremely large degree of persistence in the series, with an order of integration of about 2. The consequences of such a degree of dependence are examined in the paper along with some suggestions to reduce it in the future.

Keywords

Inflation rate; Iranian economy Persistence Structural breaks 

JEL Classification

C22 

Notes

Acknowledgements

Prof. Luis A. Gil-Alana gratefully acknowledges financial support from the Ministerio de Economía y Competitividad (ECO2017–55236). Comments from the Editor and an anonymous reviewer is gratefully acknowledged.

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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018

Authors and Affiliations

  • Luis A. Gil-Alana
    • 1
  • Yadollah Dadgar
    • 2
  • Rouhollah Nazari
    • 3
  1. 1.Faculty of Economics and ICSUniversity of NavarraPamplonaSpain
  2. 2.Economics DepartmentBeheshty UniversityTehranIran
  3. 3.Ferdowsi UniversityMashhadIran

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