Pitfalls in Financial Model Building: Comment.

Scholar Mark Ladenson's recent elaboration of the point made by economists William Brainard and James Tobin, that security demand functions must be consistent with the balance sheet constraint, overcomplicates a simple issue. Furthermore, the two contributions by Ladenson and by Brainard and Tobin,...

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Publicado en:American Economic Review Vol. 63; no. 5; pp. 1003 - 1005
Autor principal: Clinton, Kevin
Formato: Artículo
Publicado: American Economic Association Dec73
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Acceso en línea:Ver este registro en EBSCOhost
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      vid: 63
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      pub: American Economic Association
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        atl: Pitfalls in Financial Model Building: Comment.
      aug:
        au: Clinton, Kevin
        affil: Department of Banking and Financial Analysis, Bank of Canada, Ottawa.
      su:
        Economic statistics
        Econometric models
        Demand function
        Economic models
        Tobin, James, 1918-2002
        Lorenz curve
        Economists
        Phillips curve
      sug:
        subj:
          Economic statistics
          Econometric models
          Demand function
          Economic models
          Tobin, James, 1918-2002
          Lorenz curve
          Economists
          Phillips curve
      ab: Scholar Mark Ladenson's recent elaboration of the point made by economists William Brainard and James Tobin, that security demand functions must be consistent with the balance sheet constraint, overcomplicates a simple issue. Furthermore, the two contributions by Ladenson and by Brainard and Tobin, taken together, are incomplete and misleading in certain respects. This note gives a general statement of the conditions for exact exhaustion of the balance sheet constraint which includes the Brainard and Tobin and Ladenson conditions as special cases, using derivations that are much simpler than those in Ladenson's article. In short, mathematical derivation of the above the anlayais is elaborated in this article to reach some interesting conclusions.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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          year: 1973
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