Rao, B. Bhaskara and Cao, Cung (2010): New estimates of the hybrid US Phillips curve.
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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.
|Item Type:||MPRA Paper|
|Original Title:||New estimates of the hybrid US Phillips curve|
|Keywords:||New Keynesian Phillips Curve, Price Rigidities, FIML Estimation|
|Subjects:||E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations; Cycles
E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level; Inflation; Deflation
|Depositing User:||B. Bhaskara Rao|
|Date Deposited:||20. Dec 2010 03:47|
|Last Modified:||12. Feb 2013 20:46|
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