A multiple break panel approach to estimating United States Phillips curves

Research output: Working paperDiscussion paper


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Phillips curves are often estimated without due attention being paid to the underlying time series properties of the data. In particular, the consequences of inflation having discrete breaks in mean have not been studied adequately. We show by means of simulations and a detailed empirical example based on United States data that not taking account of breaks may lead to biased, and therefore spurious, estimates of Phillips curves. We suggest a method to account for the breaks in mean inflation and obtain meaningful and unbiased estimates of the short- and long-run Phillips curves in the United States.


Original languageEnglish
PublisherDepartment of Economic Studies, University of Dundee
Publication statusPublished - Oct 2014

Publication series

NameDundee Discussion Papers in Economics
ISSN (Print)1473-236X