RDP 2013-11: Issues in Estimating New-Keynesian Phillips Curves in the Presence of Unknown Structural Change Equation

π t s π t1 = c 1 +γ( π t+1 π t1 )+δ x t +{ γ( E t π t+1 π t+1 )+ ε 1t } MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@7791@