New estimates of the hybrid US Phillips curve

B. Rao and Cung Cao

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the validity of Rudd and Whelan’s (2006) critiques of Gali and Gertler’s (1999) hybrid Phillips curve (HYPC) by re-estimating the HYPC using full information maximum likelihood (FIML). We also estimate HYPC with the constraint that the weights for the sum of forward looking and backward looking expectations should be unity. Our results support Rudd and Whelan’s conclusion that the weight for forward looking expectations is insignificant.

Keywords: New Keynesian Phillips Curve; Price Rigidities; FIML Estimation (search for similar items in EconPapers)
JEL-codes: E31 E32 (search for similar items in EconPapers)
Date: 2010-12-17
New Economics Papers: this item is included in nep-mac
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