New Phillips Curve with Alternative Marginal Cost Measures for Canada, the United States, and the Euro Area

Edith Gagnon & Hashmat Khan
Recent research on the new Phillips curve (NPC) (e.g., Galí, Gertler, and López-Salido 2001a) gives marginal cost an important role in capturing pressures on inflation. In this paper we assess the case for using alternative measures of marginal cost to improve the empirical fit of the NPC. Following Sbordone (2000), we derive the aggregation factors when firms use Cobb-Douglas with overhead labour and constant elasticity of substitution (CES) technologies. We estimate the NPC for Canada,...
This data repository is not currently reporting usage information. For information on how your repository can submit usage information, please see our documentation.