Phillips curve in Canada : a tale of wage bargaining and tariff rate

Adviti Devaguptapu, Pradyumna Dash

In this paper, we re-examine the Phillips curve for Canada from June 1976 to October 2022 in a time-varying manner. Our findings reveal that the impulse response of inflation to the changes in the unemployment rate gap has reduced over time till 2010 and strengthened thereafter. The response of inflation to the changes in the unemployment rate gap has increased in short and medium horizons after 2010. On further examination, we find that changes in both average import tariff and forward participation in theglobal value chain have reduced the inflation response to the changes in the unemployment rate gap.

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Year of publication:	2023
Authors:	Devaguptapu, Adviti ; Dash, Pradyumna
Published in:	Review of Economic Analysis : REA. - Rimini : [Verlag nicht ermittelbar], ISSN 1973-3909, ZDB-ID 2535745-1. - Vol. 15.2023, 3/4, p. 285-302
Subject:	Phillips curve \| Time-varying parameter vector autoregressive model (TVP-VAR) \| average tariff rate \| global value chain \| Phillips-Kurve \| VAR-Modell \| VAR model \| Kanada \| Canada \| Zoll \| Tariffs \| Schätzung \| Estimation \| Theorie \| Theory \| Tarifverhandlungen \| Collective bargaining

Type of publication:	Article
Type of publication (narrower categories):	Aufsatz in Zeitschrift ; Article in journal
Language:	English
Classification:	E24 - Employment; Unemployment; Wages ; E31 - Price Level; Inflation; Deflation ; F10 - Trade. General ; J50 - Labor-Management Relations, Trade Unions, and Collective Bargaining. General
Source:	ECONIS - Online Catalogue of the ZBW

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