Skip to content

Inflation-output trade-off: old measures, new determinants?

Research output: Contribution to journal › Article

This study analyses the determinants of the sacrifice ratio; i.e., the output cost of disinflation. The empirical literature so far has used several model specifications, indicating the degree of model uncertainty. Even for those factors where consensus on their significance has been reached, such as trade openness and central bank independence, considerable uncertainty still surrounds their estimated sign. Motivated by the above, we estimate the most important drivers of the sacrifice ratio based on Bayesian model averaging, for a panel data set of 42 countries. Our findings confirm part of the evidence reported in the prior empirical literature, while it sheds light on the importance of other factors.
Original languageEnglish
JournalJournal of Macroeconomics
Publication statusAccepted for publication - 20 May 2020


  • Sacrifice_Ratio_Project

    Rights statement: The embargo end date of 2050 is a temporary measure until we know the publication date. Once we know the publication date the full text of this article will be able to view shortly afterwards.

    Accepted author manuscript (Post-print), 406 KB, PDF document

    Due to publisher’s copyright restrictions, this document is not freely available to download from this website until: 1/01/50

    Licence: CC BY-NC-ND

Related information

Relations Get citation (various referencing formats)

ID: 20985108