Estimated Open Economy New Keynesian Phillips Curves for the G7

Appendix III - Results

Table 5: GMM Estimates for the G-7 (Mark-up=40%)

β

α

ω

P

J-test

M1

0.89*

0.64*

0.35*

n/a

9.58

USA M2

0.88*

0.64*

0.31*

1.33

9.30

M3

0.90*

0.65*

0.34*

1.00

9.39

M4

0.95*

0.71*

0.40*

0.33

9.36

M1

0.94*

0.74*

0.31*

n/a

7.94

CAN M2

0.95*

0.81*

0.33*

1.10

7.96

M3

0.95*

0.82*

0.33*

1.00

8.01

M4

0.96*

0.84*

0.34*

0.33

8.05

M1

0.82*

0.66*

0.08**

n/a

9.25

GBR M2

0.87*

0.69*

0.08**

0.10

9.31

M3

0.85*

0.68*

0.08**

1.00

9.48

M4

0.86*

0.68*

0.08**

0.33

9.41

M1

0.94*

0.77*

0.09*

n/a

7.89

FRA M2

0.95*

0.82*

0.09*

2.55

7.48

M3

0.95*

0.79*

0.09*

1.00

7.71

M4

0.95*

0.79*

0.09*

0.33

7.63

M1

0.80*

0.92*

0.24*

n/a

8.41

DEU M2

0.66*

0.93*

0.21*

-8.74

8.64

M3

0.76*

0.91*

0.23*

1.00

8.99

M4

0.76*

0.86*

0.20*

0.33

8.86

M1

0.78*

0.61*

0.47*

n/a

9.98

ITA M2

0.80*

0.66*

0.49*

1.24

9.98

M3

0.80*

0.66*

0.50*

1.00

10.1

M4

0.87*

0.69*

0.57*

0.33

9.95

M1

0.80*

0.76*

0.33*

n/a

10.2

JPN M2

0.64*

0.73*

0.34*

-0.88

9.48

M3

0.80*

0.80*

0.34*

1.00

10.1

M4

0.76*

0.71*

0.31*

0.33

10.2