Research Discussion Paper – RDP 2013-11 Issues in Estimating New-Keynesian Phillips Curves in the Presence of Unknown Structural Change

Contents

• Introduction
• The Model and Estimators
• A Simple Variant of the Solution Algorithm
• Simulation Experiments
• The Euro Area New-Keynesian Phillips Curve and Breaks
• Conclusion
• Appendix A: Relevant Instruments
• References

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We thank Adam Cagliarini, Alex Heath and Christopher Kent for useful suggestions. We also thank Sophocles Mavroeidis for comments on an earlier draft. Responsibility for any remaining errors rests with us. Much of this work was done when Mariano Kulish was an RBA employee.