Inflation and the Skewness of the Distribution of Relative Price Changes: Empirical Evidence for Germany / Inflation und die Schiefe der Verteilung relativer Preisänderungen: Empirische Evidenz für Deutschland

Jörg Döpke 1  and Christian Pierdzioch 1
  • 1 Institute of World Economics, Düsternbrooker Weg 120, D-24100 Kiel


The paper uses German annual data covering the period 1969-2000 to present evidence on the link between aggregate inflation and the skewness of the distribution of relative price changes. Our empirical results are mixed. Our regression-based analyses suggest that the skewness of the distribution of relative price changes may be an explanatory variable for the inflation rate. Our empirical evidence in favor of the hypothesis that the skewness measure may help to explain shifts in the Phillips curve is somewhat weaker. Moreover, a structural vector autoregression reveals that the skewness may help to explain the dynamics of real output. At the same time, however, demand shocks seem to explain a non-negligible proportion of the variation of the skewness.

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The Journal of Economics and Statistics is a scientific journal published in Germany since 1863. The Journal publishes papers in all fields of economics and applied statistics. A specific focus is on papers combining theory with empirical analyses.