LUBIK, THOMAS A.; TEO, WING LEONG - In: Journal of Money, Credit and Banking 46 (2014) 1, pp. 79-114
We derive and estimate a New Keynesian Phillips Curve (NKPC) in a model with deep habits. Habits are deep in that they apply to individual consumption goods instead of aggregate consumption. This alters the NKPC in a fundamental manner since it introduces consumption growth and future demand...
