Robust Estimates of the New Keynesian Phillips Curve

Paul Levine (), Luis Martins and Vasco Gabriel

No 206, School of Economics Discussion Papers from School of Economics, University of Surrey

Abstract: In this paper, we examine the hybrid specification of the New Keynesian Phillips Curve (NKPC) proposed by Gali and Gertler (1999) by employing recently developed momentconditions inference procedures. These methods provide a more efficient and reliable econometric framework for the analysis of the NKPC. In particular, we address the issue of parameter identification, providing robust estimates and confidence sets for the model’s parameters. Our results show that the NKPC remains a valid and reliable empirical tool to explain inflation dynamics.

Keywords: price regulation; commitment problem; ratchet effect; under-investment (search for similar items in EconPapers)
JEL-codes: C22 E31 E32 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2006-01
New Economics Papers: this item is included in nep-cba, nep-for, nep-mac and nep-mon
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:sur:surrec:0206

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