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Firm-Specific Labor and Firm-Specific Capital: Implications for the Euro-Data New Phillips Curve
| Content Provider | Semantic Scholar |
|---|---|
| Author | Matheron, Julien |
| Copyright Year | 2012 |
| Abstract | Standard GMM estimates of the New Phillips curve on euro-area data yield degrees of nominal rigidity that are not in accordance with recent microeconomic evidence. This paper studies whether similar conclusions are reached in a richer model where price setters face firm-specific capital and/or firm-specific labor. We find that combining these elements or considering firm-specific labor alone leads to statistically significant and economically reasonable estimates of the degree of nominal rigidity. In contrast, ignoring firm-specific labor yields estimates that are not supported by microeconomic evidence. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://www.ijcb.org/journal/ijcb06q4a2.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |