Accession Number:

ADA014302

Title:

A Disequilibrium Adjustment Inflation Forecasting Model.

Descriptive Note:

Final rept.,

Corporate Author:

AIR FORCE ACADEMY COLO

Personal Author(s):

Report Date:

1975-07-01

Pagination or Media Count:

54.0

Abstract:

This paper describes the development and testing of a forecasting model for future rates of inflation measured by the Gross National Product price deflator. Limitations of conventional multiple-equation econometric model approaches both economic and mathematical are discussed. Correlation function analysis and stationarity considerations are employed to screen potential economic input variables before the application of regression analysis. Simulation results of a one and two-year horizon forecaster are examined, and a unique disequilibrium adjustment treatment for periods of price freeze is proposed. Author

Subject Categories:

  • Economics and Cost Analysis

Distribution Statement:

APPROVED FOR PUBLIC RELEASE