International evidence on the new Keynesian Phillips Curve using aggregate and disaggregate data

Joseph Byrne, Alexandros Kontonikas () and Alberto Montagnoli ()

Working Papers from Business School - Economics, University of Glasgow

Abstract: We present a unique empirical analysis of the properties of the New Keynesian Phillips Curve using an international dataset of aggregate and disaggregate sectoral inflation. Our results from panel time-series estimation clearly indicate that sectoral heterogeneity has important consequences for aggregate inflation behaviour. Heterogeneity helps to explain the overesti- mation of inflation persistence and underestimation of the role of marginal costs in empirical investigations of the NKPC that use aggregate data. We find that combining disaggregate information with heterogeneous-consistent estimation techniques helps to reconcile, to a large extent, the NKPC with the data.

Keywords: New Keynesian Phillips Curve; Heterogeneity; Aggregation Bias. (search for similar items in EconPapers)
JEL-codes: E31 E52 (search for similar items in EconPapers)
Date: 2010-07
New Economics Papers: this item is included in nep-cba and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.gla.ac.uk/media/media_163472_en.pdf (application/pdf)

Related works:
Journal Article: International Evidence on the New Keynesian Phillips Curve Using Aggregate and Disaggregate Data (2013)
Journal Article: International Evidence on the New Keynesian Phillips Curve Using Aggregate and Disaggregate Data (2013)
Working Paper: International Evidence on the New Keynesian Phillips Curve Using Aggregate and Disaggregate Data (2010)
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:gla:glaewp:2010_18

Access Statistics for this paper

More papers in Working Papers from Business School - Economics, University of Glasgow Contact information at EDIRC.
Bibliographic data for series maintained by Business School Research Team ().