LIQUIDITY FUNCTIONS FOR THE UNITED STATES MANUFACTURING CORPORATIONS.

The purpose of this paper is to investigate the stability of the demand functions for money and other financial assets held by the manufacturing corporate sector. Since this sector is an essential link in the transmission of monetary policy, an investigation of the stability over time of the basic p...

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Detalles Bibliográficos
Publicado en:Southern Economic Journal Vol. 44; no. 2; pp. 271 - 277
Autor principal: Laumas, G.S.
Formato: Artículo
Publicado: Wiley-Blackwell Oct77
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: LIQUIDITY FUNCTIONS FOR THE UNITED STATES MANUFACTURING CORPORATIONS.
      aug:
        au: Laumas, G.S.
      su:
        Liquidity (Economics)
        United States manufacturing industries
        Demand function
        United States
      sug:
        subj:
          United States
          Liquidity (Economics)
          United States manufacturing industries
          Demand function
      ab: The purpose of this paper is to investigate the stability of the demand functions for money and other financial assets held by the manufacturing corporate sector. Since this sector is an essential link in the transmission of monetary policy, an investigation of the stability over time of the basic parameters included in the liquidity functions of this sector is essential to an analysis of the effectiveness of the monetary policy. The investigation of the stability of the demand for money functions is undertaken using the recently developed varying parameter technique by Cooley and Prescott [3; 4; 5]. This technique is based on the premise that the parameter vector in an econometric relationship may be subject to sequential variation over time due to structural changes, specification errors, problems of aggregation, or institutional change. These factors may cause "transitory" or "permanent" shifts in the function. An econometric relationship is defined as stable if the parameters are not subject to permanent changes over time. In contrast to other estimation procedures for testing whether the parameters in a regression are constant over time, namely, the use of an F-test or dummy variables, the technique used in this paper has the advantage that it does not require any prior knowledge of the point in time when shifts in the parameters of the equation are suspected.
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    language: English
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