Change search
ReferencesLink to record
Permanent link

Direct link
Digitisations effect on the inflation rate: An empirical analysis of possible digitisation channels
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.).
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.).
2016 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

This thesis investigates the impact of a more digitised economy on the inflation rate. European countries have historically done well in reaching their inflation target. In recent years however, policymakers have been puzzled over low inflation rates that seem to be difficult to stimulate. Just recently the impact of digitisation on price stability has gained some interest in economic research however the lack of empirical evidence on this relationship is severe.

Based on scarce literature and existing theories hypotheses were constructed to test certain digitisation channels effect on the inflation rate. By gathering relevant data on inflation and the identified digitisation channels for 17 European countries over an 11- year period, econometric models corresponding to the hypotheses were analysed.

The estimated results show that digitisation have a varying net-effect on the inflation rate, demonstrating that digitisation plays a role in determining fluctuations in price stability when controlling for other macroeconomic factors. These findings indicate that policymakers should consider digital technological development when targeting inflation, even though the effects may be temporary. 

Place, publisher, year, edition, pages
2016. , 48 p.
Keyword [en]
Digitisation, Digitalisation, Digital technology, Inflation, Inflation rate Automation, E-commerce, Better-informed consumers, ICT-products, CPI, Arellano- Bond
National Category
Economics and Business
URN: urn:nbn:se:kth:diva-189769OAI: diva2:948969
Educational program
Degree of Master - Economics of Innovation and Growth
Available from: 2016-08-22 Created: 2016-07-14 Last updated: 2016-08-22Bibliographically approved

Open Access in DiVA

Digitisations effect on the inflation rate(641 kB)22 downloads
File information
File name FULLTEXT01.pdfFile size 641 kBChecksum SHA-512
Type fulltextMimetype application/pdf

Search in DiVA

By author/editor
Buchheim, ViktorKedert, Mikael
By organisation
Industrial Economics and Management (Dept.)
Economics and Business

Search outside of DiVA

GoogleGoogle Scholar
Total: 22 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Total: 102 hits
ReferencesLink to record
Permanent link

Direct link