The U.S. New Keynesian Phillips Curve: An Empirical Assessment
The authors examine the evidence presented by Galí and Gertler (1999) and Galí, Gertler, and Lopez-Salido (2001, 2003) that the inflation dynamics in the United States can be well-described by the New Keynesian Phillips curve (NKPC). The authors address several important econometrics issues that arise in estimating the NKPC model. Using the continuously updated generalized method of moments (GMM) estimator proposed by Hansen, Heaton, and Yaron (1996) and the three-step GMM estimator developed by Bonnal and Renault (2003), the authors find that the empirical evidence for the real marginal cost is rather weak. Specifically, results are sensitive to the instrument sets, normalization, estimators, sample period, and data revisions.
|Date of creation:||2004|
|Date of revision:|
|Contact details of provider:|| Postal: 234 Wellington Street, Ottawa, Ontario, K1A 0G9, Canada|
Phone: 613 782-8845
Fax: 613 782-8874
Web page: http://www.bank-banque-canada.ca/
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eric Heyer & Florian Pelgrin & Arnaud Sylvain, 2004. "Translog ou Cobb-Douglas? Le rôle des durées d'utilisation des facteurs," Staff Working Papers 04-19, Bank of Canada.
When requesting a correction, please mention this item's handle: RePEc:bca:bocawp:04-35. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.