@article{5d097aa974ef4016978245e088a08d1d,
title = "Sectoral Phillips curves and the aggregate Phillips curve",
abstract = "Sector-level Phillips curves are estimated in French data. There is considerable heterogeneity across sectors, with vastly different estimates of the backward looking component of inflation and the duration of nominal rigidities. A multi-sector model of inflation dynamics is calibrated on the basis of these sectoral estimates. Aggregate inflation, simulated on the basis of heterogeneous sectors, displays comparable dynamics to actual data. A comparison is drawn between the policy trade-offs implied by a Phillips curve based on macroeconomic estimates vs. one based on a model with heterogeneous sectors. The difference is sizeable.",
author = "Jean Imbs and Eric Jondeau and Florian Pelgrin",
note = "Funding Information: We are grateful to audiences at the ECB/CEPR conference on Wage and Labour Cost Dynamics (December 2006), ESSIM 2006, the 2006 meetings of the Society of Computational Economics, the 2006 meetings of the Society for Economic Dynamics, the 2006 Dynare conference, the joint seminar of the National Bank of Belgium, Universit{\'e} Catholique de Louvain, Universit{\'e} Libre de Bruxelles and Katholieke Universiteit Leuven, and especially to Klaus Adams, Carlos Carvalho, Marco Del Negro, David L{\'o}pez-Salido and Rafael Wouters for insightful discussions. Thanks are also due to Alexander Wolman and an anonymous referee, who helped us sharpen considerably the paper's point. Stephane Gregoir was kind enough to give us access to French data. The paper was partly written while Imbs was a Resident Scholar at the Research Department of the International Monetary Fund. Financial support from the National Center of Competence in Research “Financial Valuation and Risk Management” is gratefully acknowledged. The National Centers of Competence in Research (NCCR) are a research instrument of the Swiss National Science Foundation. All errors are our own. ",
year = "2011",
month = may,
doi = "10.1016/j.jmoneco.2011.05.013",
language = "English (US)",
volume = "58",
pages = "328--344",
journal = "Journal of Monetary Economics",
issn = "0304-3932",
publisher = "Elsevier B.V.",
number = "4",
}