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The New Keynesian Phillips Curve in a Swedish context

Rojas Mullor, Alexandra LU (2018) NEKN01 20181
Department 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.
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author
Rojas Mullor, Alexandra LU
supervisor
organization
course
NEKN01 20181
year
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},
  keyword      = {New Keynesian Phillips Curve,inflation,marginal cost,output gap},
  language     = {eng},
  note         = {Student Paper},
  title        = {The New Keynesian Phillips Curve in a Swedish context},
  year         = {2018},
}