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Testing for a Common OECD Phillips Curve

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  • Dave Turner
  • Elena Seghezza

Abstract

This paper reports estimates of a reduced form relationship explaining inflation in terms of the output gap and import price inflation for most OECD countries. Results are reported both for single equation estimation on a country-by-country basis and using a system estimation technique in order to impose common parameters across countries where such restrictions are consistent with the data. A striking feature of the results is that most of the countries accept a common sacrifice ratio ... Ce papier présente des estimations de formes réduites d'inflation pour les pays de l'OCDE. Les principales variables explicatives sont l'écart au potentiel et l'inflation importée. Deux approches économétriques sont utilisées : des estimations pays par pays, puis une estimation en système qui permet de tester et éventuellement d'imposer la similarité des coefficients à travers les pays. Le résultat le plus intéressant de cette approche est que l'on obtient ainsi des estimations de ratios de sacrifice de même ampleur pour un grand nombre de pays de l'OCDE ...

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File URL: http://dx.doi.org/10.1787/340107434541
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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 219.

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Date of creation: 27 Jul 1999
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Handle: RePEc:oec:ecoaaa:219-en

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