Real Wage Rigidity and the New Phillips Curve: The Brazilian Case

Detalhes bibliográficos
Autor(a) principal: Mazali, Antonio Alberto
Data de Publicação: 2010
Outros Autores: Divino, Jose Angelo
Tipo de documento: Artigo
Idioma: por
eng
Título da fonte: Revista Brasileira de Economia (Online)
Texto Completo: https://periodicos.fgv.br/rbe/article/view/1438
Resumo: The new Keynesian Phillips curve has been criticized for not explaining the short-run inflation-output gap trade-off. Blanchard and Galí (2007) introduced real wage rigidity and derived a trade-off between stabilizing inflation and the gap between actual and efficient output. This paper estimates the new Phillips curve for the Brazilian economy, computes short-run trade-off, analyzes real wage rigidity, and tests theoretical restrictions imposed by the model. The GMM estimations fit the data very well and all theoretical restrictions are satisfied. There is strong real wage rigidity and a high output-gap cost to stabilize inflation in the short run.
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spelling Real Wage Rigidity and the New Phillips Curve: The Brazilian CaseReal Wage Rigidity and the New Phillips Curve: The Brazilian CasePhillips CurveReal Wage RigidityUnemploymentShort-Run Trade-off.Phillips CurveReal Wage RigidityUnemploymentShort-Run Trade-off.The new Keynesian Phillips curve has been criticized for not explaining the short-run inflation-output gap trade-off. Blanchard and Galí (2007) introduced real wage rigidity and derived a trade-off between stabilizing inflation and the gap between actual and efficient output. This paper estimates the new Phillips curve for the Brazilian economy, computes short-run trade-off, analyzes real wage rigidity, and tests theoretical restrictions imposed by the model. The GMM estimations fit the data very well and all theoretical restrictions are satisfied. There is strong real wage rigidity and a high output-gap cost to stabilize inflation in the short run.A curva de Phillips Novo-keynesiana tem sido criticada por não explicar o trade-off de curto prazo entre inflação-hiato do produto. Blanchard-Gali (2007) introduziram a rigidez do salário real e derivaram um trade-off entre estabilizar inflação ou hiato do produto real e eficiente. Neste artigo estima-se essa nova curva para a economia brasileira, calcula-se o trade-off, analisa-se a rigidez do salário real e testa-se as restrições teóricas do modelo. Estimações GMM adequam-se bem aos dados e todas as restrições teóricas são satisfeitas. Há forte rigidez do salário real e alto custo do hiato do produto para estabilizar inflação no curto prazo.EGV EPGE2010-09-02info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionArticlesArtigosapplication/pdfapplication/pdfhttps://periodicos.fgv.br/rbe/article/view/1438Revista Brasileira de Economia; Vol. 64 No. 3 (2010); 291-306Revista Brasileira de Economia; v. 64 n. 3 (2010); 291-3061806-91340034-7140reponame:Revista Brasileira de Economia (Online)instname:Fundação Getulio Vargas (FGV)instacron:FGVporenghttps://periodicos.fgv.br/rbe/article/view/1438/1817https://periodicos.fgv.br/rbe/article/view/1438/1818Mazali, Antonio AlbertoDivino, Jose Angeloinfo:eu-repo/semantics/openAccess2010-09-02T18:02:02Zoai:ojs.periodicos.fgv.br:article/1438Revistahttps://periodicos.fgv.br/rbe/https://periodicos.fgv.br/rbe/oai||rbe@fgv.br1806-91340034-7140opendoar:2024-03-06T13:03:03.496756Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)true
dc.title.none.fl_str_mv Real Wage Rigidity and the New Phillips Curve: The Brazilian Case
Real Wage Rigidity and the New Phillips Curve: The Brazilian Case
title Real Wage Rigidity and the New Phillips Curve: The Brazilian Case
spellingShingle Real Wage Rigidity and the New Phillips Curve: The Brazilian Case
Mazali, Antonio Alberto
Phillips Curve
Real Wage Rigidity
Unemployment
Short-Run Trade-off.
Phillips Curve
Real Wage Rigidity
Unemployment
Short-Run Trade-off.
title_short Real Wage Rigidity and the New Phillips Curve: The Brazilian Case
title_full Real Wage Rigidity and the New Phillips Curve: The Brazilian Case
title_fullStr Real Wage Rigidity and the New Phillips Curve: The Brazilian Case
title_full_unstemmed Real Wage Rigidity and the New Phillips Curve: The Brazilian Case
title_sort Real Wage Rigidity and the New Phillips Curve: The Brazilian Case
author Mazali, Antonio Alberto
author_facet Mazali, Antonio Alberto
Divino, Jose Angelo
author_role author
author2 Divino, Jose Angelo
author2_role author
dc.contributor.author.fl_str_mv Mazali, Antonio Alberto
Divino, Jose Angelo
dc.subject.por.fl_str_mv Phillips Curve
Real Wage Rigidity
Unemployment
Short-Run Trade-off.
Phillips Curve
Real Wage Rigidity
Unemployment
Short-Run Trade-off.
topic Phillips Curve
Real Wage Rigidity
Unemployment
Short-Run Trade-off.
Phillips Curve
Real Wage Rigidity
Unemployment
Short-Run Trade-off.
description The new Keynesian Phillips curve has been criticized for not explaining the short-run inflation-output gap trade-off. Blanchard and Galí (2007) introduced real wage rigidity and derived a trade-off between stabilizing inflation and the gap between actual and efficient output. This paper estimates the new Phillips curve for the Brazilian economy, computes short-run trade-off, analyzes real wage rigidity, and tests theoretical restrictions imposed by the model. The GMM estimations fit the data very well and all theoretical restrictions are satisfied. There is strong real wage rigidity and a high output-gap cost to stabilize inflation in the short run.
publishDate 2010
dc.date.none.fl_str_mv 2010-09-02
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Articles
Artigos
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://periodicos.fgv.br/rbe/article/view/1438
url https://periodicos.fgv.br/rbe/article/view/1438
dc.language.iso.fl_str_mv por
eng
language por
eng
dc.relation.none.fl_str_mv https://periodicos.fgv.br/rbe/article/view/1438/1817
https://periodicos.fgv.br/rbe/article/view/1438/1818
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv EGV EPGE
publisher.none.fl_str_mv EGV EPGE
dc.source.none.fl_str_mv Revista Brasileira de Economia; Vol. 64 No. 3 (2010); 291-306
Revista Brasileira de Economia; v. 64 n. 3 (2010); 291-306
1806-9134
0034-7140
reponame:Revista Brasileira de Economia (Online)
instname:Fundação Getulio Vargas (FGV)
instacron:FGV
instname_str Fundação Getulio Vargas (FGV)
instacron_str FGV
institution FGV
reponame_str Revista Brasileira de Economia (Online)
collection Revista Brasileira de Economia (Online)
repository.name.fl_str_mv Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)
repository.mail.fl_str_mv ||rbe@fgv.br
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