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• W2053409600 abstract "We develop and estimate a structural model of inflation that allows for a fraction of firms that use a backward looking rule to set prices. The model nests the purely forward looking New Keynesian Phillips curve as a particular case. We use measures of arginal cost as the relevant determinant of inflation, as the theory suggests, instead of an ad-hoc output gap. Real marginal costs are a significant and quantitatively important determinant of inflation. Backward looking price setting, while statistically significant, is not quantitatively important. Thus, we conclude that the New Keynesian Phillips curve provides a good first approximation to the dynamics of inflation." @default.
• W2053409600 created "2016-06-24" @default.
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• W2053409600 date "2000-02-01" @default.
• W2053409600 modified "2023-10-17" @default.
• W2053409600 title "Inflation Dynamics: A Structural Econometric Analysis" @default.
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• W2053409600 doi "https://doi.org/10.3386/w7551" @default.
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