Partisan Theory and the New Keynesian and Sticky-Information Phillips Curves

U. of St.Gallen Economics Discussion Paper No. 25-2005

39 Pages Posted: 5 Feb 2006

See all articles by Frode Brevik

Frode Brevik

University of St. Gallen - SEPS: Economics and Political Sciences

Manfred Gartner

University of St. Gallen - SEPS: Economics and Political Sciences

Date Written: December 2005

Abstract

This paper attempts two things: First, to modernize partisan theory by merging the idea of partisan differences in macroeconomic preferences with recent, optimizing models of aggregate supply that account for sluggish nominal adjustment. This aids in resolving some puzzles posed by the current state of partisan theory research. Second, to exploit partisan patterns for a comparison of the empirical performance of the new Keynesian Phillips curve with that of a recent challenger, the sticky-information Phillips curve. It turns out that the sticky-information Phillips curve clearly outperforms its better established rival: in accounting for econometric estimates of partisan patterns in OECD countries, and in tracking post-war experience in the US.

Keywords: New Keynesian Phillips curve, sticky-information Phillips curve, partisan theory, rational partisan theory

JEL Classification: E0, E3, E6

Suggested Citation

Brevik, Frode and Gartner, Manfred, Partisan Theory and the New Keynesian and Sticky-Information Phillips Curves (December 2005). U. of St.Gallen Economics Discussion Paper No. 25-2005, Available at SSRN: https://ssrn.com/abstract=880090 or http://dx.doi.org/10.2139/ssrn.880090

Frode Brevik (Contact Author)

University of St. Gallen - SEPS: Economics and Political Sciences ( email )

Rosenbergstrasse 51
St. Gallen, St. Gallen CH-9000
Switzerland

Manfred Gartner

University of St. Gallen - SEPS: Economics and Political Sciences ( email )

Rosenbergstrasse 51
St. Gallen, St. Gallen CH-9000
Switzerland

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