Abstract
This paper seeks to verify empirically the existence of a New Keynesian Phillips curve for the Colombian economy. This allows determining if inflation dynamics are likely explained by microeconomic foundations. Additionally, this approach enables the analysis of price rigidities in the economy. The results suggest that: (1) unit labor costs explain inflation dynamics; (2) eighty percent of firms set their prices every five quarters; and, (3) productivity changes explain marginal costs.
| Translated title of the contribution | An estimated New Keynesian Phillips curve for Colombia, 1996-2006 |
|---|---|
| Original language | Spanish |
| Pages (from-to) | 11-47 |
| Number of pages | 37 |
| Journal | Lecturas de Economia |
| Volume | 73 |
| Issue number | 73 |
| State | Published - Dec 2010 |
| Externally published | Yes |
Bibliographical note
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