Turner_IS-Curve_July_2007.pdf (107.82 kB)
Some UK evidence on the forward looking IS equation
preprint
posted on 2009-05-13, 10:37 authored by Paul M. TurnerThis paper seeks to demonstrate that a backward looking specification of the IS curve using UK data can encompass the forward looking model recently discussed by Kara and Nelson (2004). By relaxing the restriction that the interest rate and the inflation rate enter the IS curve with coefficients of equal magnitude but opposite sign, we obtain IS curve estimates which are empirically plausible and which encompass the rival specification.
History
School
- Business and Economics
Department
- Economics
Publisher
© Loughborough UniversityVersion
- VoR (Version of Record)
Publication date
2007Notes
This is a working paper is also available at: http://ideas.repec.org/p/lbo/lbowps/2007_16.htmlBook series
Loughborough University. Department of Economics. Discussion Paper Series;WP 2007 - 16Language
- en