A New Keynesian Framework and Wage and Price Dynamics in the US

Bjørnar Karlsen Kivedal

Working Paper Series from Department of Economics, Norwegian University of Science and Technology

Abstract: New Keynesian model with wages and prices is introduced and estimated by maximum likelihood. The steady state relationships of the model are imposed as testable restrictions on the long-run cointegrating relationships in an equilibrium correction framework, giving an equilibrium correction model with imposed theoretical restrictions from a New Keynesian model. Short-run properties are also estimated and investigated. The results indicate that the main aspects of the theoretical model cannot be rejected. Hence, New Keynesian models may be combined with a more general vector autoregressive framework in order to conduct estimation.

Keywords: Cointegration; New Keynesian models; steady state; wages; prices; unemployment; equilibrium correction. (search for similar items in EconPapers)
JEL-codes: C32 E24 E31 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2013-07-30
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.svt.ntnu.no/iso/WP/2013/13_newkeyneswage_BKK.pdf (application/pdf)

Related works:
Journal Article: A new Keynesian framework and wage and price dynamics in the USA (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nst:samfok:15113

Access Statistics for this paper

More papers in Working Paper Series from Department of Economics, Norwegian University of Science and Technology Contact information at EDIRC.
Bibliographic data for series maintained by Anne Larsen ().