Department of Quantitative Methods

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Browsing Department of Quantitative Methods by Subject "Determinants of Inflation"

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    Determinants of inflation
    (University of Management and Technology Lahore, 2016) Ghaffar, Sadia
    In this study we will discuss about the determinants of Inflation in developing and developed countries we select the topic about determinants of inflation because all the countries worldwide are facing the problem of price rises. . The problem of inflation in Pakistan has been gradually increasing since separation and we know when prices will rise than the currency of a country will not be stable of a country. We try our best to make the best combination of the dependent and independent countries to get some meaningful results our objective in the study to find out the factors that are effecting the inflation in these days. For this purpose we collect the data from world developed indicator and index Mundi first of all we select the developing and developed countries by following the world developed indicator site after this we made the four groups of the developing countries and four groups of developed countries then we use the unit root test to find out the stationary of the variables then we run the Pooled Mean group estimators to find out the long run and short run equations we use the Shapiro wilks test to find out the normality of the model and for the purpose of Autocorrelation we use Autocorrelation Lagrange multiplier test and for model specification use the link test we check the Homoscadisty by using the White Hetroscadisticity test for the purpose of finding the Multicolinarty use variance inflation factor and tolerance method and to find out that there is co integration or not we use Kao residual co integration test.