SHAPIRO, ADAM HALE - In: Journal of Money, Credit and Banking 40 (2008) 4, pp. 627-666
It has become customary to estimate the New Keynesian Phillips Curve (NKPC) with generalized method of moments using a large instrument set that includes lags of variables that are ad hoc to the firm's price-decision problem. Researchers have also conventionally used real unit labor cost (RULC)...