Breaks in the UK Household Sector Money Demand Function.

We use non-parametric procedures to identify breaks in the underlying series of UK household sector money demand functions. Money demand functions are estimated using cointegration techniques and by employing both the Simple Sum and Divisia measures of money. P-star models are also estimated for out...

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Published in:Manchester School (1463-6786) Vol. 82; no. 2; pp. 47 - 69
Main Authors: Bissoondeeal, Rakesh, Karoglou, Michail, Mullineux, Andy
Format: Article
Published: Wiley-Blackwell Dec2014 Supplement
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Online Access:View this record in EBSCOhost
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        atl: Breaks in the UK Household Sector Money Demand Function.
      aug:
        au:
          Bissoondeeal, Rakesh
          Karoglou, Michail
          Mullineux, Andy
        affil:
          Aston University
          Bournemouth University
      su:
        Forecasting
        Money supply
        Demand for money
        Inflation forecasting
        Central banking industry
        Interest rates
      sug:
        subj:
          Forecasting
          Money supply
          Monetary Authorities-Central Bank
          Demand for money
          Inflation forecasting
          Central banking industry
          Interest rates
      ab: We use non-parametric procedures to identify breaks in the underlying series of UK household sector money demand functions. Money demand functions are estimated using cointegration techniques and by employing both the Simple Sum and Divisia measures of money. P-star models are also estimated for out-of-sample inflation forecasting. Our findings suggest that the presence of breaks affects both the estimation of cointegrated money demand functions and the inflation forecasts. P-star forecast models based on Divisia measures appear more accurate at longer horizons and the majority of models with fundamentals perform better than a random walk model.
      pubtype: Academic Journal
      doctype: Article
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    language: English
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