Lanne, Markku; Luoto, Jani - In: Journal of Economic Dynamics and Control 37 (2013) 3, pp. 561-570
We propose an estimation method of the new Keynesian Phillips curve (NKPC) based on a univariate noncausal autoregressive model for the inflation rate. By construction, our approach avoids a number of problems related to the GMM estimation of the NKPC. We estimate the hybrid NKPC with quarterly...