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| A. nazif Catik and Chris Martin |
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| ''Relative Price Adjustment and the UK Phillips Curve'' |
| ( 2010, Vol. 30 No.3 ) |
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| We find that measures of the distribution of relative price changes are significant when included in a standard model of the UK Phillips curve based on time dependent price adjustment. Since the inclusion of these variables is not implied by this model but is implied by a state-dependent model of price adjustment or by a time-dependent model with allowance for heterogeneity among price-setters, we conclude that the familiar time-dependent model does not provide a complete account of the Phillips curve. |
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| Keywords: New Keynesian Phillips curve, Relative Price Changes, Labour share |
JEL: E3 - Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data)
C1 - Econometric and Statistical Methods: General |
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| Manuscript Received : Jun 07 2010 | | Manuscript Accepted : Jul 11 2010 |
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