Modern Economy

Volume 4, Issue 9 (September 2013)

ISSN Print: 2152-7245   ISSN Online: 2152-7261

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Estimating the New Keynesian Phillips Curve by Quantile Regression Method for Turkey

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DOI: 10.4236/me.2013.49067    3,137 Downloads   5,405 Views  Citations
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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.

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Ç. Boz, "Estimating the New Keynesian Phillips Curve by Quantile Regression Method for Turkey," Modern Economy, Vol. 4 No. 9, 2013, pp. 627-632. doi: 10.4236/me.2013.49067.

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