Warianty tytułu
Języki publikacji
Abstrakty
Background: The inflation dynamics of Croatia is studied in the paper, with the review of applicable marginal cost proxies for the hybrid New Keynesian Phillips Curve (NKPC), and estimation of three specifications of the hybrid NKPC for Croatia. Objectives: The goal of this research is to examine the effect of labor's share of income, the price of energy, and 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 three NKPC specifications. The J-stat and Cragg-Donald F-test are used to test for overidentification and for weak instruments, respectively. Results: We find that the marginal cost proxy for the energy-augmented specification is statistically significant and quantitatively the largest, whereas those for the other two are statistically significant, but quantitatively negligible. Conclusions: The results provide an empirical contribution both to the literature on inflation in Croatia and the literature of the NKPC in a small open economy. We can conclude that the price of energy has been the strongest driver of inflation, whereas the open economy factors we tested have had very little influence.
Słowa kluczowe
Wydawca
Czasopismo
Rocznik
Tom
Numer
Strony
6-13
Opis fizyczny
Daty
wydano
2012-09-01
online
2012-09-19
Twórcy
autor
- Faculty of Economics and Business, University of Zagreb, Zagreb, Croatia
Bibliografia
- Bratsiotis, G. J., Robinson, W. A. (2009), "Non-Labor Unit Costs, Marginal Costs and the New Keynesian Phillips Curve", Centre for Growth and Business Cycle Research Discussion Paper Series, University of Manchester, No. 123.
- Calvo, Guillermo A. (1983), "Staggered Prices in a Utility Maximizing Framework", Journal of Monetary Economics, Vol. 12, No. 4, pp. 383-398.
- Dabušinskas, A, Kulikov, D. (2007), "New Keynesian Phillips curve for Estonia, Latvia and Lithuania", Bank of Estonia Working Paper Series, No. 7 (2007).
- Galí, J. (2002), "New Perspectives On Monetary Policy, Inflation, and the Business Cycle", Research Working Paper, No. 8767, National Bureau of Economic Research, Cambridge.
- Galí, J, Gertler, M. (1999), "Inflation Dynamics: A Structural Econometric Analysis", Journal of Monetary Economics, Vol. 44, No. 2, pp. 195-222.[WoS]
- Krznar, I. (2011), "Analiza kretanja domaće stope inflacije i Phillipsova krivulja" ["An Analysis of the Domestic Inflation Rate Dynamics and the Phillips Curve"], Croatian National Bank Working Paper Series, No. I-031.
- Leith, C, Malley, J. (2003), "Estimated Open Economy New Keynesian Phillips Curves for the G7", CESifo Working Paper Series, No. 834.
- Mazumder, S. (2010), "The New Keynesian Phillips Curve and the Cyclicality of Marginal Cost", Journal of Macroeconomics, Vol. 32, No. 3, pp. 747-765.[WoS]
- Mihailov, A, Rumler, F., Scharler, J. (2011), "The Small Open-Economy New Keynesian Phillips Curve: Empirical Evidence and Implied Inflation Dynamics", Open Economies Review, Vol. 22, No. 2, pp. 317-337.[WoS]
- Muto, I. (2009), "Estimating a New Keynesian Phillips Curve with a Corrected Measure of Real Marginal Cost: Evidence in Japan", Economic Inquiry, Vol. 47, No. 4, pp. 667-684.[WoS]
- Rudd, J, Whelan, K. (2005), "Does Labor's Share Drive Inflation?", Journal of Money, Credit, and Bankin", Vol. 37, No. 2, pp. 297-312.
- Rudd, J, Whelan, K., (2007), "Modelling Inflation Dynamics: A Critical Review of Recent Research", Journal of Money, Credit, and Banking, Vol. 39, No. s1, pp. 155-170.
- Stock, J, Watson, M. (2008), "Phillips Curve Inflation Forecasts", Research Working Paper, No. 14322, National Bureau of Economic Research, Cambridge.
- Wolman, A. (1999), "Sticky Prices, Marginal Cost, and the Behavior of Inflation", Federal Reserve Bank of Richmond Economic Quarterly, Vol. 85, No. 4, pp. 29-48.
Typ dokumentu
Bibliografia
Identyfikatory
Identyfikator YADDA
bwmeta1.element.doi-10_2478_v10305-012-0008-y