| Summary: | The article gives estimates of household demand for money and savings functions for four centrally planned economies (CPEs). The data are post-war annual time series for Czechoslovakia, the GDR, Hungary, and Poland. The authors have specified and estimated household demand for money and savings functions in four centrally planned economies. The successful estimation of the household behavioral relations and the plausibility of the estimates support their underlying hypothesis that the behavior of the household sector in CPEs can be analyzed using the same methods that are used for this sector in Western countries. The authors believe they also testify to the quality of the data series. The results give interesting comparisons between the CPEs and with other countries-e.g., of income elasticities of demand for money, long-run savings ratios-and the CPEs exhibit reasonable parameter values. The estimated savings functions fit sufficiently well that they could be used for forecasting or planning purposes.
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