ABSTRACT
In this chapter, 1 we investigate the wage and price Phillips curves – the focal point of this part of the book – from an empirical perspective that combines calibration with other estimation procedures. The approach is therefore called an Estimation Supported (ES) calibration. The chapter supplements various empirical analyses of the wage–price spiral we have undertaken in the past (see, for example, Chen et al. (2006); Chen and Flaschel (2006), which on the theoretical side are based on the model and the submodules developed, in particular, in Chiarella et al. (2005) and Asada et al. (2006). Our treatment will shed light on the various estimates of the model of the wage-price spiral that we are advocating from quite a different and new angle. Another issue will be the question of the detrending of the time series we have used so far. 2
