Generate Extension of The Slope of the Phillips Curve: Evidence from US States

Download the full directory to replicate the results.

1. Run 1_gen_extended_table2.do This file is located in the code folder. It calculates the present values for unemployment and prices, generates the necessary data for regressions, and runs estimations for both the extended and original versions. The code is fully commented, and the only modification required is to change the directory at the beginning of the code.

2. Estimation results are saved in LaTeX files in the output folder:

Original results (Table 2): psi_time_varying.tex and kappa_time_varying.tex

Extended version results: psi_time_varying_ext.tex and kappa_time_varying_ext.tex

3. Hypothesis test results are saved in a text file: t_test_results.txt

4. Conclusions and results are summarized in the PDF file: Assignment 4 – Computation.pdf