Comparison of the Relationship between CPI and PPI in the Czech Republic and Slovakia

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F47813059%3A19520%2F22%3AA0000328" target="_blank" >RIV/47813059:19520/22:A0000328 - isvavai.cz</a>

Výsledek na webu

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DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Comparison of the Relationship between CPI and PPI in the Czech Republic and Slovakia

Popis výsledku v původním jazyce

The goal of this article is to investigate the existence and character of the relationship between the Consumer Price Index (CPI) and the Producer Price Index (PPI) for the Czech Republic and Slovakia. Is there a relationship between the CPI and PPI? The CPI-PPI indicator also has a strong correlation with the overall growth rate of the economy. The smaller the difference between CPI-PPI, the higher the operating cost of the enterprise, the lower the profit of the enterprise, the slower growth of the profit of the enterprise, and the slower economic growth. The existence of a long-run equilibrium relationship between CPI and PPI has been tested with the Johansen cointegration. The existence of a long-run equilibrium relationship between CPI and PPI was confirmed in the case of Slovakia. The short-run dynamics were confirmed through statistical methods such as VEC model, Granger causality, and impulse-response function. Granger causality CPI→PPI was confirmed in Slovakia, and the causality PPI→CPI was confirmed in the Czech Republic. The EViews 12 was used for data evaluation. The results are based on the analysis of the data from Eurostat from January 2005 to June 2021 for the Czech Republic and Slovakia.

Název v anglickém jazyce

Comparison of the Relationship between CPI and PPI in the Czech Republic and Slovakia

Popis výsledku anglicky

The goal of this article is to investigate the existence and character of the relationship between the Consumer Price Index (CPI) and the Producer Price Index (PPI) for the Czech Republic and Slovakia. Is there a relationship between the CPI and PPI? The CPI-PPI indicator also has a strong correlation with the overall growth rate of the economy. The smaller the difference between CPI-PPI, the higher the operating cost of the enterprise, the lower the profit of the enterprise, the slower growth of the profit of the enterprise, and the slower economic growth. The existence of a long-run equilibrium relationship between CPI and PPI has been tested with the Johansen cointegration. The existence of a long-run equilibrium relationship between CPI and PPI was confirmed in the case of Slovakia. The short-run dynamics were confirmed through statistical methods such as VEC model, Granger causality, and impulse-response function. Granger causality CPI→PPI was confirmed in Slovakia, and the causality PPI→CPI was confirmed in the Czech Republic. The EViews 12 was used for data evaluation. The results are based on the analysis of the data from Eurostat from January 2005 to June 2021 for the Czech Republic and Slovakia.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

10102 - Applied mathematics

Projekt

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Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2022

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

40th International Conference Mathematical Methods in Economics 2022

ISBN

9788088064626

ISSN

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e-ISSN

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Počet stran výsledku

6

Strana od-do

199-204

Název nakladatele

College of Polytechnics Jihlava

Místo vydání

Jihlava

Místo konání akce

Jihlava

Datum konání akce

7. 9. 2022

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

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