The cost channel reconsidered: a comment using an identification-robust approach

Vasco Gabriel and Luis Martins

No 30/2010, NIPE Working Papers from NIPE - Universidade do Minho

Abstract: We re-examine the empirical relevance of the cost channel of monetary policy (e.g. Ravenna and Walsh, 2006), employing recently developed moment-conditions inference methods, including identification-robust procedures. Using US data, our results suggest that the cost channel effect is poorly identified and we are thus unable to corroborate the previous results in the literature.

Keywords: Cost channel; Phillips curve; GMM; Generalized Empirical Likelihood; Weak Identification. (search for similar items in EconPapers)
JEL-codes: C22 E31 E32 (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-cba and nep-mon
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: The Cost Channel Reconsidered: A Comment Using an Identification-Robust Approach (2010)
Journal Article: The Cost Channel Reconsidered: A Comment Using an Identification‐Robust Approach (2010)
Working Paper: The Cost Channel Reconsidered: A Comment Using an Identification-Robust Approach (2010)
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