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Replication data for: Can Rational Expectations Sticky-Price Models Explain Inflation Dynamics?

Version
V0
Resource Type
Dataset
Creator
  • Rudd, Jeremy
  • Whelan, Karl
Publication Date
2006-03-01
Description
  • Abstract

    The canonical inflation specification in sticky-price rational expectations models (the new-Keynesian Phillips curve) is often criticized for failing to account for the dependence of inflation on its own lags. In response, many studies employ a "hybrid" specification in which inflation depends on its lagged and expected future values, together with a driving variable such as the output gap. We consider some simple tests of the hybrid model that are derived from its closed form. We find that the hybrid model describes inflation dynamics poorly, and find little empirical evidence for the type of rational, forward-looking behavior that the model implies.
Availability
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Relations
  • Is supplement to
    DOI: 10.1257/000282806776157560 (Text)
Publications
  • Rudd, Jeremy, and Karl Whelan. “Can Rational Expectations Sticky-Price Models Explain Inflation Dynamics?” American Economic Review 96, no. 1 (February 2006): 303–20. https://doi.org/10.1257/000282806776157560.
    • ID: 10.1257/000282806776157560 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-06

Rudd, Jeremy; Whelan, Karl (2006): Replication data for: Can Rational Expectations Sticky-Price Models Explain Inflation Dynamics?. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E116078