TY - BOOK ID - 85504005 TI - Is There a Phillips Curve? A Full Information Partial Equilibrium Approach PY - 2018 SN - 1484346661 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Phillips curve. KW - Inflation (Finance) KW - Unemployment KW - Mathematical models KW - Effect of inflation on KW - Inflation KW - Macroeconomics KW - Civics and Citizenship KW - Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) KW - Price Level KW - Deflation KW - Formal and Informal Sectors KW - Shadow Economy KW - Institutional Arrangements KW - Labor Economics: General KW - Civil service & public sector KW - Labour KW - income economics KW - Sticky prices KW - Price adjustments KW - Civil society KW - Labor KW - Prices KW - Economic sectors KW - Labor economics KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:85504005 AB - Empirical tests of the New Keynesian Phillips Curve have provided results often inconsistent with microeconomic evidence. To overcome the pitfalls of standard estimations on aggregate data, a Full Information Partial Equilibrium approach is developed to exploit sectoral level data. A model featuring sectoral NKPCs subject to a rich set of shocks is constructed. Necessary and sufficient conditions on the structural parameters are provided to allow sectoral idiosyncratic components to be linearly extracted. Estimation biases are corrected using the model's restrictions on the partial equilibrium propagation of idiosyncratic shocks. An application to the US, Japan and the UK rejects the purely forward looking, labor cost-based NKPC. ER -