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dc.contributor.authorShapiro, Adam Haleen_US
dc.date.accessioned2006-07-25en_US
dc.date.accessioned2012-02-23T08:28:15Z-
dc.date.available2012-02-23T08:28:15Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/55639-
dc.description.abstractIt has become customary to estimate the New Keynesian Phillips Curve (NKPC) with GMM using a large instrument set that includes lags of variables that are ad hoc to the model. Researchers have also conventionally used real unit labor cost (RULC) as the proxy for real marginal cost, even though it is difficult to support its significance. This paper introduces a new proxy for the real marginal cost term as well as a new instrument set, both of which are based on the micro foundations of the vertical chain of production. I find that the new proxy, based on input prices as opposed to wages, provides a more robust and significant fit to the model. Instruments that are based on the vertical chain of production appear to be both more valid and relevant towards the model.en_US
dc.language.isoengen_US
dc.publisherFederal Reserve Bank of Boston Boston, MAen_US
dc.relation.ispartofseriesWorking paper series // Federal Reserve Bank of Boston 06-11en_US
dc.subject.jelC2en_US
dc.subject.jelC5en_US
dc.subject.jelE5en_US
dc.subject.jelE3en_US
dc.subject.ddc330en_US
dc.titleEstimating the New Keynesian Phillips Curve: A vertical production chain approachen_US
dc.typeWorking Paperen_US
dc.identifier.ppn514905883en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Working Paper Series, Federal Reserve Bank of Boston

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