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

π t = c 1 +α π t1 +γ π t+1 +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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@7123@