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Some international evidence for Keynesian economics without the Phillips curve
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Farmer, Roger E. A. and Nicolò, Giovanni (2021) Some international evidence for Keynesian economics without the Phillips curve. The Manchester School, 89 (S1). pp. 1-22. doi:10.1111/manc.12296 ISSN 1463-6786.
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Official URL: https://doi.org/10.1111/manc.12296
Abstract
Farmer and Nicolò (Journal of Economic Dynamics and Control, 89, 2018, p 137–150) show that the Farmer Monetary (FM)‐model outperforms the three‐equation New Keynesian (NK)‐model in post‐war U.S. data. In this paper, we compare the marginal data density of the FM‐model with marginal data densities for determinate and indeterminate versions of the NK‐model for three separate samples using U.S., U.K. and Canadian data. We estimate versions of both models that restrict the parameters of the private sector equations to be the same for all three countries. Our preferred specification is the constrained version of the FM‐model which has a marginal data density that is more than 40 log points higher than the NK alternative. Our findings also demonstrate that cross‐country macroeconomic differences are well explained by the different shocks that hit each economy and by differences in the ways in which national central banks reacted to those shocks.
Item Type: | Journal Article | ||||||||
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Divisions: | Faculty of Social Sciences > Economics | ||||||||
Journal or Publication Title: | The Manchester School | ||||||||
Publisher: | Wiley-Blackwell Publishing Ltd. | ||||||||
ISSN: | 1463-6786 | ||||||||
Official Date: | September 2021 | ||||||||
Dates: |
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Volume: | 89 | ||||||||
Number: | S1 | ||||||||
Page Range: | pp. 1-22 | ||||||||
DOI: | 10.1111/manc.12296 | ||||||||
Status: | Peer Reviewed | ||||||||
Publication Status: | Published | ||||||||
Reuse Statement (publisher, data, author rights): | This is the peer reviewed version of the following article: Farmer, R. E. and Nicolò, G. (2019), Some International Evidence for Keynesian Economics Without the Phillips Curve. The Manchester School. which has been published in final form at https://doi.org/10.1111/manc.12296 This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. | ||||||||
Access rights to Published version: | Restricted or Subscription Access | ||||||||
Date of first compliant deposit: | 29 May 2019 | ||||||||
Date of first compliant Open Access: | 24 July 2021 | ||||||||
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