Inflation dynamics of Turkey: A structural estimation

Küçük Resim Yok

Tarih

2005

Dergi Başlığı

Dergi ISSN

Cilt Başlığı

Yayıncı

Berkeley Electronic Press

Erişim Hakkı

info:eu-repo/semantics/closedAccess

Özet

Recent empirical research on the New Keynesian Phillips Curve (NKPC) does not offer any supporting evidence for its benchmark version in which all firms are forward-looking. There is, however, empirical support for a modified, hybrid, NPKC, in which only a proportion of the firms that use a forward-looking rule to set prices. This paper estimates both the benchmark and the hybrid versions of the NKPC using Turkish data. In contrast with the previous applications on developed countries like the U.S. and several Euro area countries, we find empirical support for the benchmark NPKC. This support persists even after controlling for the weak identification problem which has been a serious concern in generalized method of moment estimation. Moreover, the hybrid NKPC is refuted by the data, i.e. the backward-looking behavior is found to be statistically insignificant.

Açıklama

Anahtar Kelimeler

Weak Identification, Instruments, Inference, Gmm

Kaynak

Studies in Nonlinear Dynamics and Econometrics

WoS Q Değeri

Q3

Scopus Q Değeri

Q2

Cilt

9

Sayı

1

Künye