You are here
IS THE PHILLIPS CURVE A UNICORN?
- Date Issued:
- 2021
- Abstract/Description:
- The new Keynesian wage Phillips curve (NKWPC) is derived from the standard new Keynesian Phillips curve (NKPC) that is examined and verified by many economists. The NKWPC model uses the structural wage equation to present the significant inverse relationship between wage inflation and the unemployment rate in the US economy with the significant assumption of a constant natural rate of unemployment. This study examines the NKWPC model using the generalized method of moments (GMM) and generalized autoregressive conditionally heteroskedastic-M (GARCH-M) to confirm the critical inverse relationship of the Phillips curve. In particular, this study tests the NKWPC separately targeting the official unemployment rate from Komlos (2019)’s real unemployment rate. The estimated results of this study support the NKWPC re-confirming a significant negative relationship between wage inflation and unemployment, using two different econometric techniques of GMM and GARCH-M. Moreover, it is apparent that they do not distinguish the official unemployment rate from the real unemployment rate. The Phillips curve is not just a unicorn, or rarity, in the economic world. It is a substantial indicator and still holds merit. This study yields to another lending support to the importance of the Phillips curve.
Title: | IS THE PHILLIPS CURVE A UNICORN?. |
52 views
27 downloads |
---|---|---|
Name(s): |
Lee, Sanghyun Paul, author Yuhn, Ky-Hyang, Thesis advisor Florida Atlantic University, Degree grantor Department of Economics College of Business |
|
Type of Resource: | text | |
Genre: | Electronic Thesis Or Dissertation | |
Date Created: | 2021 | |
Date Issued: | 2021 | |
Publisher: | Florida Atlantic University | |
Place of Publication: | Boca Raton, Fla. | |
Physical Form: | application/pdf | |
Extent: | 59 p. | |
Language(s): | English | |
Abstract/Description: | The new Keynesian wage Phillips curve (NKWPC) is derived from the standard new Keynesian Phillips curve (NKPC) that is examined and verified by many economists. The NKWPC model uses the structural wage equation to present the significant inverse relationship between wage inflation and the unemployment rate in the US economy with the significant assumption of a constant natural rate of unemployment. This study examines the NKWPC model using the generalized method of moments (GMM) and generalized autoregressive conditionally heteroskedastic-M (GARCH-M) to confirm the critical inverse relationship of the Phillips curve. In particular, this study tests the NKWPC separately targeting the official unemployment rate from Komlos (2019)’s real unemployment rate. The estimated results of this study support the NKWPC re-confirming a significant negative relationship between wage inflation and unemployment, using two different econometric techniques of GMM and GARCH-M. Moreover, it is apparent that they do not distinguish the official unemployment rate from the real unemployment rate. The Phillips curve is not just a unicorn, or rarity, in the economic world. It is a substantial indicator and still holds merit. This study yields to another lending support to the importance of the Phillips curve. | |
Identifier: | FA00013772 (IID) | |
Degree granted: | Thesis (M.S.)--Florida Atlantic University, 2021. | |
Collection: | FAU Electronic Theses and Dissertations Collection | |
Note(s): | Includes bibliography. | |
Subject(s): |
Phillips curve Labor market |
|
Persistent Link to This Record: | http://purl.flvc.org/fau/fd/FA00013772 | |
Use and Reproduction: | Copyright © is held by the author with permission granted to Florida Atlantic University to digitize, archive and distribute this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder. | |
Use and Reproduction: | http://rightsstatements.org/vocab/InC/1.0/ | |
Host Institution: | FAU | |
Is Part of Series: | Florida Atlantic University Digital Library Collections. |