Behavior of Inflation Rate in Albania Using Time

  • Pkzana Diko
  • Triftar Nosaco

Abstract

December 2016. The autoregressive conditional heteroscedastic (ARCH) and their extensions, generalized autoregressive conditional heteroscedasticity (GARCH)) models are used to better fit the data. The study reveals that the inflation series is stationary, non-normality and has serial correlation.   Based on minimum AIC and SIC values the best model turn to be GARCH (1, 1) model with mean equation ARMA (2, 1)x(2, 0)12. Based on the selected model one year of inflation is forecasted (from January 2016 to December 2016).

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Published
2018-08-07
How to Cite
DIKO, Pkzana; NOSACO, Triftar. Behavior of Inflation Rate in Albania Using Time. Universal Journal of Mathematics, [S.l.], v. 2, n. 2, p. 180-185, aug. 2018. ISSN 2456-1312. Available at: <http://uproonline.com/index.php/UJM/article/view/74>. Date accessed: 17 aug. 2018.
Section
Articles