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Increasing returns to scale and the long-run Phillips curve

  • Vaona, Andrea
  • Snower, Dennis

A growing body of empirical evidence shows that there exists a long-run positive trade-off between inflation and real macroeconomic activity. Within a New Keynesian framework, we examine how increasing returns generate a positive long-run relation between inflation and output.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4R7J802-1/1/cb89a4ee66fb79e7ccc99a381d447102
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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 100 (2008)
Issue (Month): 1 (July)
Pages: 83-86

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Handle: RePEc:eee:ecolet:v:100:y:2008:i:1:p:83-86
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  18. Mark J Roberts & Dylan Supina, 1997. "Output Price And Markup Dispersion In Micro Data: The Roles Of Producer And Heterogeneity And Noise," Working Papers 97-10, Center for Economic Studies, U.S. Census Bureau.
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