01796cas a2200241 a 4500 AALejournalIMF018309 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484345207 1018-5941 BD-DhAAL BD-DhAAL Piazza, Roberto. Is There a Phillips Curve? : A Full Information Partial Equilibrium Approach / Roberto Piazza. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (59 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Empirical tests of the New Keynesian Phillips Curve have provided results often inconsistent with microeconomic evidence. To overcome the pitfalls of standard estimations on aggregate data, a Full Information Partial Equilibrium approach is developed to exploit sectoral level data. A model featuring sectoral NKPCs subject to a rich set of shocks is constructed. Necessary and sufficient conditions on the structural parameters are provided to allow sectoral idiosyncratic components to be linearly extracted. Estimation biases are corrected using the model's restrictions on the partial equilibrium propagation of idiosyncratic shocks. An application to the US, Japan and the UK rejects the purely forward looking, labor cost-based NKPC. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2018/044 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/044/001.2018.issue-044-en.xml IMF e-Library