Is the New Keynesian Phillips curve flat?
Abstract
This paper provides Monte Carlo evidence that GMM estimates of the New Keynesian Phillips curve are biased towards finding too much price rigidity if cost-push shocks are auto-correlated. This result may reconcile GMM estimates with the microevidence on price rigidities.Download Info
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Bibliographic Info
Article provided by Elsevier in its journal Economics Letters.
Volume (Year): 103 (2009)
Issue (Month): 1 (April)
Pages: 39-41
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Web page: http://www.elsevier.com/locate/ecolet
Related research
Keywords: Price rigidities New Keynesian Phillips curve Cost-push shocks GMM estimation;Other versions of this item:
- Keith Kuester & Gernot J. Müller & Sarah Stölting, 2007. "Is the New Keynesian Phillips curve flat?," Working Paper Series 809, European Central Bank.
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Minford, Patrick & Ou, Zhirong & Wickens, Michael, 2012. "Revisiting the Great Moderation using the Method of Indirect Inference," Cardiff Economics Working Papers E2012/9, Cardiff University, Cardiff Business School, Economics Section, revised May 2013.
- Dino Martellato, 2008. "Economic Integration and Macroeconomic Convergence in the Euro Area," Working Papers 2008_34, Department of Economics, University of Venice "Ca' Foscari".
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