There is no a priori reason to suppose that price-setting behaviour is homogeneous across sectors and countries. Aggregate data is, however, commonly used to estimate the New Keynesian Phillips curve (NKPC), which may very well yield erroneous results if price-setting behaviour is heterogeneous....

There is no a priori reason to suppose that price-setting behaviour is homogeneous across sectors and countries. Aggregate data is, however, commonly used to estimate the New Keynesian Phillips curve (NKPC), which may very well yield erroneous results if price-setting behaviour is heterogeneous....

Time series unit root evidence suggests that inflation is nonstationary. By contrast, when using more powerful panel unit root tests, Culver and Papell (1997) find that inflation is stationary. In this paper, we test the robustness of this result by applying a battery of recent panel unit root...