EconPapers    
Economics at your fingertips  
 

A multimarket approach to estimate a New Keynesian Phillips Curve

Ivan Araya (), Jorge Dresdner () and Juan de Dios Tena ()

DES - Working Papers. Statistics and Econometrics. WS from Universidad Carlos III de Madrid. Departamento de Estadística

Abstract: We propose a new approach to estimate and "hybrid" New Keynesian Phillips Curve (NKPC) that includes demand pressures coming from disequilibrium relations in three different markets: (1) the monetary and financial, (2) the international, and (3) the labor market. In the application, our results show that all three markets contribute to the evolution of inflation. However, the effect of shocks on equilibrium in the labour market and short run movements in cyclical output are relatively more important than other shocks. Based on econometric tests, this specification is proved to be superior to the traditional NKPC that includes a single variable to account for demand pressures.

Keywords: New; Keynesian; Phillips; Curve; Cointegration; Monetary; Policy (search for similar items in EconPapers)
JEL-codes: E3 C3 (search for similar items in EconPapers)
Date: 2007-10
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://e-archivo.uc3m.es/bitstream/handle/10016/1069/ws076917.pdf?sequence=1 (application/pdf)

Related works:
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:cte:wsrepe:ws076917

Access Statistics for this paper

More papers in DES - Working Papers. Statistics and Econometrics. WS from Universidad Carlos III de Madrid. Departamento de Estadística
Bibliographic data for series maintained by Ana Poveda ().

 
Page updated 2021-06-15
Handle: RePEc:cte:wsrepe:ws076917