Abstract
This study used to test the threshold cointegration approach to test the Roomer (1993) hypothesis of sacrifice ratio in case of Pakistan for economic growth, inflation rate and exchange rate using time series data between 1981q1:2016q4. It has been concluded that, there is sacrifice ratio but it differs as in less persistent regime to high persistent regime. In less persistent regime economic growth showing positive sacrifice ratio; as both economic growth and inflation are positively linked but on the other hand, in high persistent regime the sacrifice ratio contradicts. There is negative association and sacrifice ratio is -0.169 as per quarter. This is the cost of slowing down the economic growth to check the inflation in the economy

Umer Hussain, S. M. Naeem Nawaz. (2017) Roomer Hypothesis of Sacrifice Ratio: Asymmetric Analysis in Case Of Pakistan, Paradigms , Vol 11, Issue 2 .
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