Rao, B. Bhaskara; Paradiso, Antonio - Volkswirtschaftliche Fakultät, … - 2011
This paper uses recent US data to estimate the new Keynesian Phillips curve (NKPC) with three modifications. Firstly, the variables in the NKPC are found to be nonstationary. Therefore, it is estimated with the time series methods and the cointegrating equations are tested for structural breaks....