Russell, Bill; Banerjee, Anindya; Malki, Issam; … - Department of Economics Studies, University of Dundee - 2011
data. In particular, the consequences of inflation having discrete breaks in mean have not been studied adequately. We show … by means of simulations and a detailed empirical example based on United States data that not taking account of breaks … may lead to biased, and therefore spurious, estimates of Phillips curves. We suggest a method to account for the breaks in …