Islam, Faridul and Shahbaz, Muhammad and Shabbir, Muhammad (2011): Phillips curve in a small open economy: A time series exploration of North Cyprus.
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The paper explores the existence and the stability of Phillips curve for North Cyprus, a small developing economy, using time series data. ADF unit root test is employed to check for stationarity. ARDL and DOLS approaches to cointegration have been used to explore the long run relation and ECM to understand short run dynamics. The predictive properties DOLS are better than those of the conventional methods. The estimates point to the existence of Phillips curve both in the long and the short run. CUSUM and CUSUMsq tests confirm a stable relation.
|Item Type:||MPRA Paper|
|Original Title:||Phillips curve in a small open economy: A time series exploration of North Cyprus|
|English Title:||Phillips curve in a small open economy: A time series exploration of North Cyprus|
|Keywords:||Inflation, Unemployment, ADF, Cointegration, DOLS|
|Subjects:||E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E24 - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital
E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level; Inflation; Deflation
C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C22 - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
|Depositing User:||aviral tiwari|
|Date Deposited:||25. Jan 2011 20:49|
|Last Modified:||11. Feb 2013 19:51|
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