Partisan Theory and the New Keynesian and Sticky-Information Phillips Curves
Series
Department of Economics Discussion Paper
Type
discussion paper
Date Issued
2005-12-31
Author(s)
Abstract
This paper attempts two things: First, to modernize partisan theory by merging the idea of partisan differences in macroeconomic preferences with recent, optimizing models of aggregate supply that account for sluggish nominal adjustment. This aids in resolving some puzzles posed by the current state of partisan theory research. Second, to exploit partisan patterns for a comparison of the empirical performance of the new Keynesian Phillips curve with that of a recent challenger, the sticky-information Phillips curve. It turns out that the sticky-information Phillips curve clearly outperforms its better established rival: in accounting for econometric estimates of partisan patterns in OECD countries, and in tracking post-war experience in the US.
[http://www.vwa.unisg.ch/RePEc/usg/dp2005/DP-25_Ga.pdf Download full text]
[http://www.vwa.unisg.ch/RePEc/usg/dp2005/DP-25_Ga.pdf Download full text]
Language
English
Keywords
New Keynesian Phillips curve
sticky-information Phillips curve
partisan theory
rational partisan theory
HSG Classification
contribution to scientific community
Refereed
No
Number
25-2005
Start page
35
Subject(s)
Division(s)
Eprints ID
22766