Valadkhani, Abbas - In: International Review of Economics & Finance 33 (2014) C, pp. 270-285
This paper examines the way in which output gap influences quarterly inflation during the period 1970q1–2013q1 in Canada, the UK and the US by adopting a Markov regime-switching model. In addition to the regime-dependent effects of the output gap, this study controls for the regime-invariant...