Has the Phillips Curve Flattened in South Korea?
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This paper investigates the relationship between unemployment and inflation rates in South Korea. In particular, we apply a methodology recently developed by Hazell et al. (2022) to estimate both aggregate and regional Phillips curves based on price indices for non-tradable items and unemployment data for 16 first-tier administrative divisions in South Korea. We find that the estimated slope of the Phillips curve was small during 1992-2018 and became flattened since the mid-2000s. Controlling for time-fixed effects, however, weakens the magnitudes and statistical significance of overall estimates.
Abstract
This paper investigates the relationship between unemployment and inflation rates in South Korea. In particular, we apply a methodology recently developed by Hazell et al. (2022) to estimate both aggregate and regional Phillips curves based on price indices for non-tradable items and unemployment data for 16 first-tier administrative divisions in South Korea. We find that the estimated slope of the Phillips curve was small during 1992-2018 and became flattened since the mid-2000s. Controlling for time-fixed effects, however, weakens the magnitudes and statistical significance of overall estimates.
참고문헌 (14)
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