importance of inflation dynamics. In contrast, (homogeneous) GMM estimators induce a negative bias on marginal costs, yet a … of two important empirical debates. First, to what extent properly measured marginal costs affect inflation dynamics …. Second, to what extent purely forward looking inflation can be reconciled with the data. In this paper, we show heterogeneity …

Swedish data by means of GMM and Full Information Maximum Likelihood. The results show that with real marginal cost in the … variable for Swedish inflation than the output gap. However, standard errors in the estimations are large and it is in fact … difficult to pin down a statistically significant relationship between either real marginal cost or the output gap and inflation. …

Background: The inflation dynamics of Croatia is studied in the paper, with the review of applicable marginal cost … the price of imports and other open economy factors in driving inflation in Croatia from the first quarter of 2000 to the … fourth quarter of 2011. Methods/Approach: We use the generalized method of moments (GMM) estimator to empirically estimate …