The code for our paper on European inflation dynamics, published in volume 45 of this journal (Galı́ et al., 2001), contained an error in the formula used to calibrate the elasticity of output with respect to capital in a Cobb–Douglas production function (the parameter denoted by α in the original paper). That error was also reflected in the description of that calibration in the note to Table 1. Below we report the corrected estimates corresponding to the panels of Tables 1–3 that were affected by the error. None of the qualitative results are significantly altered, though the implied estimates of average price durations are somewhat higher, especially in the Euro area.
ASJC Scopus subject areas
- Economics and Econometrics