Testing Output-inflation Trade-off: A Note

This study estimates the Asai (1999) proposed simplified BMR model (Ball et al., 1988) and ARY model (Akerlof et al., 1988) using quarterly data from Malaysia, Thailand, Japan and US. Unlike other earlier authors, we ensure that our models’ residuals are free from serial correlation and ARCH effect...

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Main Authors: Venus, Khim-Sen Liew, Lim, Kian-Ping, Puah, Chin Hong
Format: Article
Language:English
Published: Researchgate 2006
Subjects:
Online Access:http://ir.unimas.my/id/eprint/17986/
http://ir.unimas.my/id/eprint/17986/7/Testing%20Output-inflation%20Trade-off%20%28abstract%29.pdf
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author Venus, Khim-Sen Liew
Lim, Kian-Ping
Puah, Chin Hong
author_facet Venus, Khim-Sen Liew
Lim, Kian-Ping
Puah, Chin Hong
author_sort Venus, Khim-Sen Liew
building UNIMAS Institutional Repository
collection Online Access
description This study estimates the Asai (1999) proposed simplified BMR model (Ball et al., 1988) and ARY model (Akerlof et al., 1988) using quarterly data from Malaysia, Thailand, Japan and US. Unlike other earlier authors, we ensure that our models’ residuals are free from serial correlation and ARCH effects. For the ARY model, Malaysia and US show strong evidence for new Keynesian model, while Thailand and Japan produce inconclusive results. As for the BMR model, all countries provide strong evidence for new Keynesian model. Our finding implies that government generally plays a significant role in altering the economy’s business cycle. Besides, this study suggests that future researchers should do and report residuals diagnostic tests to show the viability of their results.
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institution Universiti Malaysia Sarawak
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language English
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publishDate 2006
publisher Researchgate
recordtype eprints
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spelling unimas-179862020-05-06T07:13:23Z http://ir.unimas.my/id/eprint/17986/ Testing Output-inflation Trade-off: A Note Venus, Khim-Sen Liew Lim, Kian-Ping Puah, Chin Hong H Social Sciences (General) This study estimates the Asai (1999) proposed simplified BMR model (Ball et al., 1988) and ARY model (Akerlof et al., 1988) using quarterly data from Malaysia, Thailand, Japan and US. Unlike other earlier authors, we ensure that our models’ residuals are free from serial correlation and ARCH effects. For the ARY model, Malaysia and US show strong evidence for new Keynesian model, while Thailand and Japan produce inconclusive results. As for the BMR model, all countries provide strong evidence for new Keynesian model. Our finding implies that government generally plays a significant role in altering the economy’s business cycle. Besides, this study suggests that future researchers should do and report residuals diagnostic tests to show the viability of their results. Researchgate 2006 Article PeerReviewed text en http://ir.unimas.my/id/eprint/17986/7/Testing%20Output-inflation%20Trade-off%20%28abstract%29.pdf Venus, Khim-Sen Liew and Lim, Kian-Ping and Puah, Chin Hong (2006) Testing Output-inflation Trade-off: A Note. The IUP Journal of Applied Economics, 5 (2). pp. 16-25. ISSN 0138-9130 https://www.researchgate.net/publication/5105040_NEW_EVIDENCE_ON_THE_OUTPUT-INFLATION_TRADE-OFF_FROM_ASEAN-5_ECONOMIES
spellingShingle H Social Sciences (General)
Venus, Khim-Sen Liew
Lim, Kian-Ping
Puah, Chin Hong
Testing Output-inflation Trade-off: A Note
title Testing Output-inflation Trade-off: A Note
title_full Testing Output-inflation Trade-off: A Note
title_fullStr Testing Output-inflation Trade-off: A Note
title_full_unstemmed Testing Output-inflation Trade-off: A Note
title_short Testing Output-inflation Trade-off: A Note
title_sort testing output-inflation trade-off: a note
topic H Social Sciences (General)
url http://ir.unimas.my/id/eprint/17986/
http://ir.unimas.my/id/eprint/17986/
http://ir.unimas.my/id/eprint/17986/7/Testing%20Output-inflation%20Trade-off%20%28abstract%29.pdf