Sectoral Phillips Curves and the Aggregate Phillips Curve

Details

Serval ID
serval:BIB_711B27209AF8
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
Sectoral Phillips Curves and the Aggregate Phillips Curve
Journal
Journal of Monetary Economics
Author(s)
Imbs J., Jondeau E., Pelgrin F.
ISSN
0304-3932
Publication state
Published
Issued date
05/2011
Peer-reviewed
Oui
Volume
58
Number
4
Pages
328-344
Language
english
Abstract
Sector-level Phillips curves are estimated in French data. There is considerable heterogeneity across sectors, with vastly different estimates of the backward looking component of inflation and the duration of nominal rigidities. A multi-sector model of inflation dynamics is calibrated on the basis of these sectoral estimates. Aggregate inflation, simulated on the basis of heterogeneous sectors, displays comparable dynamics to actual data. A comparison is drawn between the policy trade-offs implied by a Phillips curve based on macroeconomic estimates vs. one based on a model with heterogeneous sectors. The difference is sizeable.
Keywords
New Keynesian Phillips Curve, Heterogeneity, Inflation Persistence, Marginal Costs
Web of science
Create date
14/04/2011 13:27
Last modification date
20/08/2019 14:29
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