Research

The Neutrality Properties of Competing Relative Price Models: Tests Using Linear Feedback

This article uses a variant of Geweke's (1982) linear feedback measure to test common characterizations of monetary neutrality implicit in classes of relative price models. The neutrality properties are defined in terms of relative price changes' response to monetary policy shocks in a system including average price changes, an interest rate, and industrial production growth. The magnitude and patterns of monetary feedback found in U.S. relative price data provide no support for any of the structurally neutral models.

Publication Information
Article Title: The Neutrality Properties of Competing Relative Price Models: Tests Using Linear Feedback
Journal: Journal of Business and Economic Statistics (Jan, 1991)
v. 9, iss. 1, pp. 15-25
Author(s): McGarvey, Mary G
Researcher Information
    
McGarvey, Mary G
McGarvey, Mary G
Associate Professor of Economics
Expertise:
  • Applied Econometrics
  • Public Policy Analysis
  • Economics of Obesity
  • Labor Markets
Economics
CoB 525 P
P.O. Box 880489
University of Nebraska-Lincoln
Lincoln, NE 68588-0489, USA
Phone: (402) 472-9415
mmcgarvey1@unl.edu