A Theory-Based, State-Dependent Phillips Curve and its Estimation.

To explain the existing empirical irregularity about the slope of a Phillips curve, this article provides a model of imperfect competition to show that the slope of a Phillips curve is shock-dependent. We empirically apply a state-space, Markov-switching model to examine the impact of inflation surp...

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Publicado en:Economic Inquiry Vol. 43; no. 1; pp. 194 - 206
Autores principales: Lee, Hsiu-Yun, Wu, Jyh-Lin, Chen, Show-Lin
Formato: Artículo
Publicado: Wiley-Blackwell January 2005
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: A Theory-Based, State-Dependent Phillips Curve and its Estimation.
      aug:
        au:
          Lee, Hsiu-Yun
          Wu, Jyh-Lin
          Chen, Show-Lin
      su:
        Economic shock
        Phillips curve
        Estimation theory
      sug:
        subj:
          Economic shock
          Phillips curve
          Estimation theory
      ab: To explain the existing empirical irregularity about the slope of a Phillips curve, this article provides a model of imperfect competition to show that the slope of a Phillips curve is shock-dependent. We empirically apply a state-space, Markov-switching model to examine the impact of inflation surprise on the unemployment gap, resulting in the state-dependent Phillips curve fitting quite well. Our empirical evidence indicates that an unexpected monetary expansion does produce effects in reducing unemployment rates and that supply shocks should not be ignored in estimating the Phillips curve because they dominate demand shocks in several nonoil shock periods. (JEL C51, E24, E52) Reprinted by permission of the publisher.
      pubtype: Academic Journal
      doctype: Article
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    language: English
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