Estimation of Hybrid Phillips Curve: A Source of Conflicting Empirical Results.
Recent empirical studies of the hybrid Phillips curve draw conflicting conclusions about the relative role of forward-looking behavior and the role of marginal cost as the driving force. It is difficult to identify the source of the conflicting results in past studies because of differences in the m...
| Publicado en: | Southern Economic Journal Vol. 78; no. 4; pp. 1265 - 1289 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
Apr2012
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=75151087&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 75151087 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00384038 SEJ jtl: Southern Economic Journal issn: 00384038 maglogo: N pubinfo: dt: Apr2012 vid: 78 iid: 4 pid: 480 pub: Wiley-Blackwell artinfo: ui: 75151087 10.4284/0038-4038-78.4.1265 ppf: 1265 ppct: 24 formats: fmt: – @attributes: type: T – @attributes: type: P size: 13MB tig: atl: Estimation of Hybrid Phillips Curve: A Source of Conflicting Empirical Results. aug: au: Hwang, Hae-shin Kim, Woong affil: Texas A&M University, Department of Economics, 3035 Allen Building, College Station, TX 77843-4228, USA The Bank of Korea, Research Department, 110, 3-Ga, Namdaemun-Ro, Jung-Gu, Seoul, 100-794, Korea su: Economic indicators Phillips curve Mathematical models of inflation Demand function Mathematical variables sug: subj: Economic indicators Phillips curve Mathematical models of inflation Demand function Mathematical variables ab: Recent empirical studies of the hybrid Phillips curve draw conflicting conclusions about the relative role of forward-looking behavior and the role of marginal cost as the driving force. It is difficult to identify the source of the conflicting results in past studies because of differences in the measure of inflation, the estimation equation, and the instrumental variables. This article presents evidence that a source of the conflict is the use of suboptimal sets of instruments. When the optimum set of instruments is selected by using the L[sub 2]-boosting method from the principal components of a large number of valid instruments, all conflicting conclusions in previous studies vanish. Regardless of the choice of inflation measure and estimation equation, we identify the dominant role of forward-looking behavior and a significant effect of the real marginal cost on inflation. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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