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
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Abstract
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.
| Item Type: | Article |
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| Uncontrolled Keywords: | Business cycle; New Keynesian model; New classical model,unimas, university, universiti, Borneo, Malaysia, Sarawak, Kuching, Samarahan, ipta, education, research, Universiti Malaysia Sarawak. |
| Subjects: | H Social Sciences > H Social Sciences (General) |
| Divisions: | Academic Faculties, Institutes and Centres > Faculty of Economics and Business Faculties, Institutes, Centres > Faculty of Economics and Business |
| Depositing User: | Ab Rahim |
| Date Deposited: | 09 Oct 2017 04:40 |
| Last Modified: | 06 May 2020 07:13 |
| URI: | http://ir.unimas.my/id/eprint/17986 |
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