TITLE:
Estimating the New Keynesian Phillips Curve by Quantile Regression Method for Turkey
AUTHORS:
Çiğdem Boz
KEYWORDS:
Quantile Regression; New Keynesian Phillips Curve; Turkish Economy
JOURNAL NAME:
Modern Economy,
Vol.4 No.9,
September
11,
2013
ABSTRACT:
New Keynesian
Phillips Curve based on nominal
rigidities and rational expectations is a widely used structural model of inflation dynamics in the analysis of
monetary policy. It postulates that current inflation is determined by expected
inflation and by the real marginal costs. This study uses the Quantile
Regression Method (QRM) to present the New Keynesian Phillips Curve (NKPC)
estimation for Turkey instead of Generalized Method of Momentum (GMM). This
method identifies differences in response of the inflation to changes in
explanatory variables at various points of inflation.