Supply, Factor Shares and Inflation Persistence: Re-Examining Euro-Area New-Keynesian Phillips Curves

McAdam, Peter and Willman, Alpo (2004) Supply, Factor Shares and Inflation Persistence: Re-Examining Euro-Area New-Keynesian Phillips Curves. Oxford Bulletin of Economics and Statistics, 66 (S1). pp. 637-670. (The full text of this publication is not available from this repository)

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Official URL
http://ssrn.com/abstract=591596

Abstract

Using euro-area data, we re-examine the empirical success of New-Keynesian Phillips curves (NKPCs). We re-estimate with a suitably specified optimizing supply side (which attempts to treat non-stationarity in factor income shares and mark-ups) that allows us to derive estimates of technology parameters, marginal costs and 'price gaps'. Our resulting estimates of the euro-area NKPCs are robust, provide reasonable estimates for fixed-price durations and discount rates and embody plausible dynamic properties. Our method for identifying the underlying determinants of NKPCs has general applicability to a wide set of countries as well as of use for sectoral studies.

Item Type: Article
Subjects: H Social Sciences
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: G.F. Green
Date Deposited: 07 Oct 2008 09:54
Last Modified: 30 May 2014 15:25
Resource URI: http://kar.kent.ac.uk/id/eprint/9430 (The current URI for this page, for reference purposes)
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