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Many macroeconomic models involve hybrid equations, in which some variables are a function of both their lags and their expected future value. The hybrid ``New Keynesian'' Phillips Curve is a prominent example. Estimates of such hybrid models have produced conflicting empirical results: Studies...
Persistent link: https://www.econbiz.de/10005702637
Many macroeconomic models (including the NKPC - "New Keynesian" Phillips Curve) involve hybrid equations, in which some variables depend on both their lags and leads. Hybrid models have produced conflicting empirical results: GMM (respectively ML) estimation find the forward- looking component...
Persistent link: https://www.econbiz.de/10005119217