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- Title
Estimations of the Sacrifice Ratio Through Dual Regimes: An Evidence from Indian Perspective.
- Authors
Sharma, Devashish; Mishra, Amritkant
- Abstract
This investigation applies a VAR and an ARDL model to estimate the sacrifice ratio in the period of 1968–2018 subject to two regimes in India. The range for the sacrifice ratio mostly lies between − 0.5 and 1 for the period of 1968–2002 while also experiencing sensitive shifts of − 10 and 15. For the period of 2002–2018, the ratio lies between − 3 and 5. Furthermore, the long run estimate of the sacrifice ratio is − 2.35 and the short run is − 0.35. It is concluded that the period of 1968–2002 was more sensitive and more prone to disinflationary costs than gains while the period of 2002–2018 is more resilient and is characterized by both costs and gains to disinflation. The gains from disinflation for the period of 2002–2018 exceed those of the period of 1968–2002. In a comparative perspective, the costs to disinflation for India are much less than the usual range of the sacrifice ratio for advanced economies.
- Subjects
INDIA; VECTOR autoregression model; PRICE deflation
- Publication
Journal of International Commerce, Economics & Policy, 2023, Vol 14, Issue 1, p1
- ISSN
1793-9933
- Publication type
Article
- DOI
10.1142/S1793993323500060