Relative price adjustment and the UK Philips curve

A. Nazif Catik, Chris Martin

Research output: Contribution to journalArticle

Abstract

We find that measures of the distribution of relative price changes are significant when included in a standard model of the UK Phillips curve based on time dependent price adjustment. Since the inclusion of these variables is not implied by this model but is implied by a state-dependent model of price adjustment or by a time-dependent model with allowance for heterogeneity among price-setters, we conclude that the familiar time-dependent model does not provide a complete account of the Phillips curve.

Original languageEnglish
Pages (from-to)1737-1744
Number of pages7
JournalEconomics Bulletin
Volume30
Issue number3
Publication statusPublished - 11 Jul 2010

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

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