New Keynesian Phillips Curves

Using euro-area data, we re-examine the empirical success of New Keynesian Phillips Curves (NKPCs). The nature of our re-evaluation relies on the actual empirical underpinnings of such estimates: we find existing estimates un-robust and u0096 given that key parameters are generally calibrated rather than estimated u0096 potentially at odds with the data. We re-estimate with a wellspecified optimizing supply-side (which attempts to treat non-stationarity in factor income shares and mark-ups) and this allows us to derive estimates of technology parameters and marginal costs. Our resulting estimates of the euro-area NKPCs are robust, provide reasonable estimates for fixed-price durations and discount rates and embody plausible dynamic properties. Our method for identifying and estimating New Keynesian Phillips curves has general applicability to a wide set of countries and might also be used in identifying sectoral NKPCs.

MoreLess

Alternative title:	a reassessment using euro-area data
Year of publication:	2003-09-01
Authors:	McAdam, Peter ; Willman, Alpo
Publisher:	European Central Bank
Subject:	EU-Staaten \| EU countries \| Europäische Wirtschafts- und Währungsunion \| European Economic and Monetary Union \| Inflationsrate \| Inflation rate \| Phillips-Kurve \| Phillips curve

Full text |

More access options

Check Google Scholar

In German libraries (KVK)

I need help

More details

Extent:	624640 bytes 65 p. application/pdf
Series:	Working paper series / European Central Bank ; 265
Type of publication:	Book / Working Paper
Language:	English
Classification:	E31 - Price Level; Inflation; Deflation ; Inflation ; European Economic and Monetary Union ; Labour Market. General Resources ; EU ; Economic and growth policies ; Currency. Monetary policy ; Individual Working Papers, Preprints
Source:	ArchiDok