The Unassuming Economist

From a paper by Ali Moridian, Hassan Heidari, Seyed Mehdi Hosseini, and Heshmatolah Asgari:

“This study investigates the asymmetric effects of Economic Policy Uncertainty (EPU) and Oil Price Uncertainty (OPU) on inflation in Iran, using the Quantile-on-Quantile (QQ) regression method. Given Iran’s oil-dependent economy, the research aims to understand how global and domestic uncertainties impact inflation dynamics, particularly during economic turbulence. Traditional models often neglect the non-linear and heterogeneous effects of uncertainty on inflation, prompting the use of the QQ approach to capture the varying impacts across different quantiles.”