Non-Linear Analysis of Post Keynesian Phillips Curve in Canada Labor Market

Bildirici, Melike; Özaksoy, Fulya

doi:10.1016/s2212-5671(16)30209-x

Cited by 8 publications

(9 citation statements)

References 21 publications

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“…The potential presence of asymmetries in the relation between these variables indicates nonlinearity of the Phillips curve, which can be concave, convex or bent over, as suggested by some of the recent studies (e.g. Bildirici & Özaksoy, 2016;Bildirici & Sonustun Özaksoy, 2018;Kobbi & Gabsi, 2017). The nonlinearity of the Phillips curve has important implications for economic policy modelling and achieving a goal of price stability.…”

Section: Introductionmentioning

confidence: 93%

“…In recent studies, the nonlinear character of the relationship between the inflation rate and various macroeconomic variables is emphasized. Thus, Bildirici and Özaksoy (2016) analyse nonlinearities in the Post Keynesian Phillips curve in Canada, in order to investigate the degree of labour market flexibility. They reveal a bidirectional causality relationship between inflation, unemployment, and economic growth, indicating that the labour market is flexible.…”

Section: Review Of the Empirical Literaturementioning

confidence: 99%

“…The presence of cointegration, as well as the long-run and short-run asymmetries between the variables, is tested using the standard Wald test, which is a common approach in empirical research (e.g. Bildirici & Özaksoy, 2016;Kobbi & Gabsi, 2017;Shin et al, 2014;Tang & Bethencourt, 2017). All null hypothesis formulations are given in section 5, along with estimation results.…”

Section: Linear and Nonlinear Ardl Model Specificationsmentioning

confidence: 99%

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Asymmetries in effects of domestic inflation drivers in the Baltic States: a Phillips curve-based nonlinear ARDL approach

Mihajlović

Marjanović

2020

Baltic Journal of Economics

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This study investigates asymmetry in the impact of domestic inflation drivers in the Baltic States, focusing on the output gap and unemployment gap. We aim to reveal how positive and negative changes in these economic activity indicators affect the inflation rate by employing a nonlinear autoregressive distributed lag approach (NARDL) and the Phillips curve. Empirical results demonstrate the long-run asymmetry as inflation in Estonia and Lithuania responds more significantly to positive changes in the output gap, whereas negative changes in the unemployment gap exhibit a stronger long-run impact on inflation in all three countries. These findings mainly suggest some extent of downward price rigidity in the Baltic economies, indicating a nonlinear Phillips curve and relatively large costs of disinflation policy directed to aggregate demand reduction. Further analysis reveals that increasing downward nominal wage flexibility could reduce these asymmetries in Estonia and, to a lesser extent, in Latvia and Lithuania.

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Section: Introductionmentioning

confidence: 93%

Section: Review Of the Empirical Literaturementioning

confidence: 99%

Section: Linear and Nonlinear Ardl Model Specificationsmentioning

confidence: 99%

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Asymmetries in effects of domestic inflation drivers in the Baltic States: a Phillips curve-based nonlinear ARDL approach

Mihajlović

Marjanović

2020

Baltic Journal of Economics

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“…It also composes a sort of detent on the macroeconomic policy implications. For instance, if policy makers decide on stimulating economic activity, ultimate outcomes are originated by the Phillips Curve which settles the set of sustainable inflation-unemployment trade-offs (Bildirici & Özaksoy, 2016;Ozaksoy, 2015).…”

Section: Introductionmentioning

confidence: 99%

Backward bending structure of Phillips Curve in Japan, France, Turkey and the U.S.A.

Bildirici

Sonüstün

2018

Economic Research-Ekonomska Istraživanja

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“…There is widespread agreement that Phillips (1958) is an important paper in economics. But several writers claim a negative relationship between inflation and unemployment known before Phillips (1958): for example, the basic idea was suggested by Hume in 1752; and empirical evidence was reported by Fischer in 1926;Tinbergen in 1937;Brown in 1955;Klein and Goldberger in 1955;Clark in 1957;Sultan in 1957(Bildirici & Özaksoy, 2016Forder, 2014, pp. 11-12).…”

Section: Introductionmentioning

confidence: 99%

The Phillips Curve and Oil Prices

Simister¹

2017

IREF

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This paper investigates the "Phillips curve", a controversial topic in macroeconomics. Many economists claim the Phillips curve is unreliable; recent evidence suggests economists should reconsider the Phillips curve. In particular, this paper investigates a modified Phillips curve, broadly consistent with the 1958 paper by Phillips: it includes import prices as an important influence on inflation. Analysis begins with UK data, as a case study: three Figures are shown, with a discussion on effects of OPEC global oil prices-rises in 1970s. This paper reports regression evidence, for nine countries, which support the idea that the Phillips curve is clearer if we control for import prices.

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Non-Linear Analysis of Post Keynesian Phillips Curve in Canada Labor Market

Cited by 8 publications

References 21 publications

Asymmetries in effects of domestic inflation drivers in the Baltic States: a Phillips curve-based nonlinear ARDL approach

Asymmetries in effects of domestic inflation drivers in the Baltic States: a Phillips curve-based nonlinear ARDL approach

Backward bending structure of Phillips Curve in Japan, France, Turkey and the U.S.A.

The Phillips Curve and Oil Prices

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