From this research program emerged the New Keynesian Phillips curve that relates actual and expected inflation not to the unemployment rate but to a measure of aggregate marginal cost. The second and third paper in this issue discuss the estimation of the structural parameters of the NKPC. Introduc...
more than twice the native rate. The costs (including the marginal tax distortion to raise the money) is staggering. Consider that there are an estimated 10-15 million Mexican born living in the US. Even with a very low estimate of nett welfare cost this represents perhaps 50-100 billion...