Flattening of the Phillips curve and the role of the oil price: An unobserved component model for the USA and Australia

C-Tier
Journal: Economics Letters
Year: 2012
Volume: 117
Issue: 1
Pages: 259-262

Authors (2)

Paradiso, Antonio (Università Ca' Foscari Venezia) Rao, B. Bhaskara

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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Abstract

We used the unobserved component model of Harvey (1989, 2011) to estimate the Phillips curve for the USA and Australia, augmenting it with the oil price. Our results show that while the coefficient of demand pressure and the intercept decreased, the coefficient of the oil price increased. Therefore, the oil price is likely to play a significant role in future inflation rates.

Technical Details

RePEc Handle
repec:eee:ecolet:v:117:y:2012:i:1:p:259-262
Journal Field
General
Author Count
2
Added to Database
2026-01-26