Estimating the New Keynesian Phillips Curve: The Case of Italy
AbstractIn this paper we estimate the hybrid version of the New Keynesian Phillips Curve using Italian data. We study to which extent Real Marginal Cost definition and calibration of markup and labour income share affect the main parameters estimate. Our results show that the backward-looking component is statistically significant and quantitatively large. Moreover, this estimate does not depend on changes in technology and in calibration of the two parameters. Conversely, we have found that price stickiness average duration is sensitive to the definition of firm's costs and the calibration choices.
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Bibliographic InfoArticle provided by SIPI Spa in its journal Rivista di Politica Economica.
Volume (Year): 96 (2006)
Issue (Month): 2 (March-April)
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Find related papers by JEL classification:
- 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
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