The New Keynesian Phillips Curve in a Swedish context
(2018) NEKN01 20181Department of Economics
- Abstract
- This paper investigates if inflation dynamics in Sweden can be properly modelled by the New Keynesian Phillips Curve (NKPC). Four versions of the NKPC are tested on quarterly data between 1995 and 2016 using Generalized Method of Moments (GMM) as the estimation method. The following versions are empirically tested: the NKPC with output gap, the NKPC with marginal costs, the hybrid NKPC and the sectoral hybrid NKPC. None of the estimated models yields empirical results that are in accordance with the theoretical predictions, implying weak support of the NKPC as an adequate model for Swedish inflation dynamics.
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8958781
- author
- Rojas Mullor, Alexandra LU
- supervisor
- organization
- course
- NEKN01 20181
- year
- 2018
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- New Keynesian Phillips Curve, inflation, marginal cost, output gap
- language
- English
- id
- 8958781
- date added to LUP
- 2018-09-26 10:46:26
- date last changed
- 2018-09-26 10:46:26
@misc{8958781, abstract = {{This paper investigates if inflation dynamics in Sweden can be properly modelled by the New Keynesian Phillips Curve (NKPC). Four versions of the NKPC are tested on quarterly data between 1995 and 2016 using Generalized Method of Moments (GMM) as the estimation method. The following versions are empirically tested: the NKPC with output gap, the NKPC with marginal costs, the hybrid NKPC and the sectoral hybrid NKPC. None of the estimated models yields empirical results that are in accordance with the theoretical predictions, implying weak support of the NKPC as an adequate model for Swedish inflation dynamics.}}, author = {{Rojas Mullor, Alexandra}}, language = {{eng}}, note = {{Student Paper}}, title = {{The New Keynesian Phillips Curve in a Swedish context}}, year = {{2018}}, }