Asymmetric output-gap effects in Phillips curve and mark-up pricing models: Evidence for the US and the UK

Michael P. Clements, Marianne Sensier

Research output: Contribution to journalArticlepeer-review

Abstract

A number of studies have found an asymmetric response of consumer price index inflation to the output gap in the US in simple Phillips curve models. We consider whether there are similar asymmetries in mark-up pricing models, that is, whether the mark-up over producers' costs also depends upon the sign of the (adjusted) output gap. The robustness of our findings to the price series is assessed, and also whether price-output responses in the UK are asymmetric.
Original languageEnglish
Pages (from-to)359-374
Number of pages15
JournalScottish Journal of Political Economy
Volume50
Issue number4
DOIs
Publication statusPublished - Sept 2003

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