Is the Phillips curve disappearing? Evidence from a new test procedure
Document Type
Article
Publication Date
3-30-2021
Abstract
This paper proposes a four-step procedure to examine a disappearance of the Phillips curve. The procedure involves estimating an initial value, computing a potential output using the state-space model, calculating a static slope coefficient of the Phillips curve and estimating a time-varying slope coefficient. This analytical sequence was employed to examine data from ASEAN countries. The findings indicated a trend of a disappearing Phillips curve in the region.
Keywords
Phillips curve, Rolling window method, State-space model, ASEAN
Divisions
aei
Funders
Tun Ismail Ali Chair (TIACRG2018.23)
Publication Title
Applied Economics Letters
Volume
28
Issue
6
Publisher
Taylor & Francis
Publisher Location
2-4 PARK SQUARE, MILTON PARK, ABINGDON OX14 4RN, OXON, ENGLAND