Contracting Models of the Phillips Curve : Empirical Estimates for Middle-Income Countries
This paper provides empirical estimates of contracting models of the Phillips curve for four middle-income developing economies-Chile, the Republic of Korea, the Philippines, and Turkey. Following an analytical review, models with both one lead and...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2003/09/2620960/contracting-models-phillips-curve-empirical-estimates-middle-income-countries http://hdl.handle.net/10986/18054 |
| Summary: | This paper provides empirical estimates
of contracting models of the Phillips curve for four
middle-income developing economies-Chile, the Republic of
Korea, the Philippines, and Turkey. Following an analytical
review, models with both one lead and one lag, and two lags
and three leads, are then estimated using Generalized Method
of Moments (GMM) techniques. The results indicate that for
both Chile and Turkey past and future inflation are of about
the same magnitude in affecting current inflation. In Korea
past inflation has a larger impact on inflation, whereas in
the Philippines it is future inflation that plays a larger
role. Homogeneity restrictions are satisfied for Korea and
Turkey, but not for Chile and the Philippines. |
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