Publication
Jun 2007
This paper re-examines the validity of the Phillips-Curve framework using US data. The authors make three main innovations. First, they introduce into the well-known Calvo price staggering framework, a regime-dependent price-changing signal. Second, they engage on a careful modeling of long-run supply in the economy. Finally, they include two types of labor adjustment costs reflecting the intensive and extensive participation decisions.
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English (PDF, 22 pages, 567 KB) |
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Author | Peter McAdam, Alpo Willman |
Series | Kiel Institute Working Papers |
Issue | 1359 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2007 Kiel Institute for the World Economy |