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

Principal Investigator(s):  View help for Principal Investigator(s) Jeremy Rudd; Karl Whelan

Version:  View help for Version V1

Name File Type Size Last Modified
LICENSE.txt text/plain 14.6 KB 12/06/2019 10:44:AM
figure1.regs.out text/plain 10.1 KB 12/06/2019 10:44:AM
figure1.regs.prg text/plain 3.9 KB 12/06/2019 10:44:AM
figure2.regs.out text/plain 12.8 KB 12/06/2019 10:44:AM
figure2.regs.prg text/plain 4.3 KB 12/06/2019 10:44:AM
figure5a.regs.out text/plain 12.4 KB 12/06/2019 10:44:AM
figure5a.regs.prg text/plain 3.9 KB 12/06/2019 10:44:AM
figure5b.regs.out text/plain 14.9 KB 12/06/2019 10:44:AM
figure5b.regs.prg text/plain 4.3 KB 12/06/2019 10:44:AM
figure_1_dat.wk1 image/x-cur 8.7 KB 12/06/2019 10:44:AM

Project Citation: 

Rudd, Jeremy, and Whelan, Karl. Replication data for: Can Rational Expectations Sticky-Price Models Explain Inflation Dynamics? Nashville, TN: American Economic Association [publisher], 2006. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-12-06. https://doi.org/10.3886/E116078V1

Project Description

Summary:  View help for Summary 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.

Scope of Project

JEL Classification:  View help for JEL Classification
      E13 General Aggregative Models: Neoclassical
      E23 Macroeconomics: Production
      E31 Price Level; Inflation; Deflation


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V1 [2019-12-06]

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