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dc.contributor.authorRavenna, Federicoen_US
dc.contributor.authorWalsh, Carl E.en_US
dc.date.accessioned2009-01-28T15:00:03Z-
dc.date.available2009-01-28T15:00:03Z-
dc.date.issued2007en_US
dc.identifier.urihttp://hdl.handle.net/10419/17874-
dc.description.abstractThe canonical new Keynesian Phillips Curve has become a standard component of models designed for monetary policy analysis. However, in the basic new Keynesian model, there is no unemployment, all variation in labor input occurs along the intensive hours margin, and the driving variable for inflation depends on workers? marginal rates of substitution between leisure and consumption. In this paper, we incorporate a theory of unemployment into the new Keynesian theory of inflation and empirically test its implications for inflation dynamics. We show how a traditional Phillips curve linking inflation and unemployment can be derived and how the elasticity of inflation with respect to unemployment depends on structural characteristics of the labor market such as the matching technology that pairs vacancies with unemployed workers. We estimate on US data the Phillips curve generated by the model, and derive the implied marginal cost measure driving inflation dynamics.en_US
dc.language.isoengen_US
dc.publisherKiel Institute for the World Economy (IfW) Kielen_US
dc.relation.ispartofseriesKieler Arbeitspapiere 1362en_US
dc.subject.jelE58en_US
dc.subject.jelE52en_US
dc.subject.jelJ64en_US
dc.subject.ddc330en_US
dc.titleVacancies, Unemployment, and the Phillips Curveen_US
dc.typeWorking Paperen_US
dc.identifier.ppn535023936en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
Kieler Arbeitspapiere, IfW

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