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Is the Phillips curve disappearing? Evidence from a new test procedure

Author

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  • Fumitaka Furuoka
  • Kiew Ling Pui
  • Ma Tin Chomar
  • Larisa Nikitina

Abstract

This paper proposes a four-step procedure to examine a disappearance of the Phillips curve. The procedure involves estimating an initial value, computing a potential output using the state–space model, calculating a static slope coefficient of the Phillips curve and estimating a time-varying slope coefficient. This analytical sequence was employed to examine data from ASEAN countries. The findings indicated a trend of a disappearing Phillips curve in the region.

Suggested Citation

  • Fumitaka Furuoka & Kiew Ling Pui & Ma Tin Chomar & Larisa Nikitina, 2021. "Is the Phillips curve disappearing? Evidence from a new test procedure," Applied Economics Letters, Taylor & Francis Journals, vol. 28(6), pages 493-500, March.
    • Handle: RePEc:taf:apeclt:v:28:y:2021:i:6:p:493-500
    DOI: 10.1080/13504851.2020.1761528
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    Cited by:

    1. Aginta, Harry, 2023. "Revisiting the Phillips curve for Indonesia: What can we learn from regional data?," Journal of Asian Economics, Elsevier, vol. 85(C).

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