Intrinsic wage inflation persistence

By making use of a hazard function we derive a hybrid New Keynesian Wage Phillips curve (NKWPC) that is able to account for in‡ation persistence. This approach relies on the assumption that the probability to change a wage is a positive function of the time elapsed from last reset. By using GMM estimation, we also test that all the terms characterizing the NKWPC are statistically signi…cant and that the hazard function has positive slope.

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Year of publication:	2013-09
Authors:	Giovanni, Di Bartolomeo ; Marco, Di Pietro
Institutions:	Department of Communication, University of Teramo
Subject:	hazard function \| wage in‡ation inertia \| hybrid Phiilips curves \| GMM estimation

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Extent:	application/pdf
Series:	wp.comunite.
Type of publication:	Book / Working Paper
Classification:	E31 - Price Level; Inflation; Deflation
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010820142