in three areas. First, we use identical twins, to control for family effects and genetic ability bias, and the education … reported by the other twin to control for schooling measurement error. Our estimates suggest a return to schooling for UK … findings suggest lower ability bias in within-twin pair regressions than pooled regressions. Third, using data on twins smoking …

, efficiency wages, technological sophistication; second, a measurement error in sales, probably because cash holdings are end … estimates for Spain increase substantially jointly considering correlated fixed effects and measurement error. Additionally, our …

preferences. While both yield an inflation bias, recession aversion dampens the output effects of contractionary supply shocks …. Some inflation may therefore reflect policy preferences. …

correlations, rather than theory, disinflations (escapes from high to low inflation) may periodically occur but are not bound to …Sargent (1999) warns that if policy makers’ views on the unemployment-inflation trade-off are driven by empirical … last. This Paper asks how different inflation objectives by the policy maker affect this result. We show that escapes in …

-in-the-utility-function approach with a welfare cost of ‘current’ inflation. Under commitment, for the most plausible specification time inconsistency … takes the form of surprise inflation, if there is high initial government debt. Although ‘orthodox’, this result contradicts …-run inflation rate is quite likely to be positive, not negative as in Obstfeld’s related analysis. …

We generalise the analysis of inflation bias with dynamic Phillips curves in three respects. First, we examine the … for inflation in which steady state inflation is below its target. In this sense, we obtain negative inflation bias. Third …. Second, we show that the commitment (time inconsistent) solution does not normally involve zero inflation and output at its …

. Nevertheless, an independent central bank is found not to produce an inflation bias because it is accountable to the majority of … the population, which is not involuntarily unemployed. In contrast, government-dependence leads to an inflation bias and a … higher variability of inflation, but has an ambiguous effect on employment variability. The reason is that democratic …

The Kydland-Prescott, Barro-Gordon inflation bias result relies on the presumption that policymakers aim at achieving a … of realism. We show that even if policymakers are content with the normal level of employment there is an inflation bias … employment below the normal level than to policy misses leading to employment above it. This new view of the inflation bias …

announced inflation target would reduce the Barro-Gordon inflation bias, but only at the expense of distorting the central bank … observed inflation would eliminate the inflation bias without distorting the stabilization effort. We view this result as a … methodological criticism of the Barro-Gordon model, and not a statement about the ease with which the bias can be eliminated. Thus …