The Slope of the Phillips Curve for Service Prices in Japan: Regional Panel Data Approach

Yui Kishaba and Tatsushi Okuda
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Yui Kishaba: Bank of Japan

No 23-E-8, Bank of Japan Working Paper Series from Bank of Japan

Abstract: We estimate the slope of the Phillips curve for service prices in Japan using prefecture-level panel data, where we control the impact of inflation expectations on inflation by including time-fixed effects instead of proxies for inflation expectations. Our estimates indicate the flattening of the slope of the Phillips curve for the majority of seven subgroups in services since the 2000s. We also examine for any changes in the slope of the Phillips curve in the 2010s and during the Covid-19 pandemic, but observe no clear evidence of such changes.

Keywords: Phillips curve; Service prices; Inflation expectations; Inflation dynamics (search for similar items in EconPapers)
JEL-codes: C32 C33 E31 E52 (search for similar items in EconPapers)
Date: 2023-05-01
New Economics Papers: this item is included in nep-ban, nep-des and nep-mon
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:boj:bojwps:wp23e08

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