@techreport{048d5928a3fe430aa3e738830f16c46e,
title = "International evidence on the new Keynesian Phillips Curve using aggregate and disaggregate data",
abstract = "We present a unique empirical analysis of the properties of the New Keynesian Phillips Curve using an international dataset of aggregate and disaggregate sectoral inflation. Our results from panel time-series estimation clearly indicate that sectoral heterogeneity has important consequences for aggregate inflation behaviour. Heterogeneity helps to explain the overesti- mation of inflation persistence and underestimation of the role of marginal costs in empirical investigations of the NKPC that use aggregate data. We find that combining disaggregate information with heterogeneous-consistent estimation techniques helps to reconcile, to a large extent, the NKPC with the data.",
keywords = "New Keynesian Phillips Curve, Heterogeneity, Aggregation Bias",
author = "Byrne, {Joseph Paul} and Alexandros Kontonikas and Alberto Montagnoli",
year = "2010",
month = jul,
day = "9",
language = "English",
series = "Economics Working Papers",
publisher = "Adam Smith Business School, University of Glasgow",
number = "2010_18",
type = "WorkingPaper",
institution = "Adam Smith Business School, University of Glasgow",
}