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

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