Replication data for: International Competition and Inflation: A New Keynesian Perspective

Principal Investigator(s): View help for Principal Investigator(s) Luca Guerrieri; Christopher Gust; J. David López-Salido

Version: View help for Version V1

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OpenNKPCReplicationCode			10/12/2019 09:00:PM
LICENSE.txt	text/plain	14.6 KB	10/12/2019 05:00:PM

Project Citation:

Guerrieri, Luca, Gust, Christopher, and López-Salido, J. David. Replication data for: International Competition and Inflation: A New Keynesian Perspective. Nashville, TN: American Economic Association [publisher], 2010. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E114187V1

Project Description

Summary: We develop and estimate an open economy New Keynesian Phillips Curve (NKPC) in which variable demand elasticities give rise to movements in desired markups in response to changes in competitive pressure from abroad. A parametric restriction yields the standard NKPC under constant elasticity and no role for foreign competition to influence domestic inflation. Foreign competition plays an important role in accounting for the behavior of traded goods price inflation. Foreign competition accounted for more than half of a 4 percentage point decline in domestic goods price inflation in the 1990s. Our results also provide evidence against demand curves with a constant elasticity. (JEL E12, E22, E31, F14, F41)

Scope of Project

JEL Classification:
      E12 General Aggregative Models: Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
      E22 Investment; Capital; Intangible Capital; Capacity
      E31 Price Level; Inflation; Deflation
      F14 Empirical Studies of Trade
      F41 Open Economy Macroeconomics

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Published Versions

V1 [2019-10-12]

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