Estimating the Long-Run Demand for Money from Time-Series Data.
A simple theoretical model is developed to illustrate that three aggregation procedures used in the estimation of long-run money demand functions from time-series data--deflating the aggregate data by population and prices, deflating by prices only, or using nominal data undeflated by population or...
| Publicado en: | Journal of Political Economy Vol. 82; no. 6; pp. 1221 - 1238 |
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| Formato: | Artículo |
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University of Chicago Press
Nov/Dec74
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=5054672&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 5054672 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00223808 JPE jtl: Journal of Political Economy issn: 00223808 maglogo: N pubinfo: dt: Nov/Dec74 vid: 82 iid: 6 pid: 415 pub: University of Chicago Press artinfo: ui: 5054672 10.1086/260273 ppf: 1221 ppct: 17 formats: tig: atl: Estimating the Long-Run Demand for Money from Time-Series Data. aug: au: Jacobs, Rodney L. su: Demand for money Demand function sug: subj: Demand for money Demand function ab: A simple theoretical model is developed to illustrate that three aggregation procedures used in the estimation of long-run money demand functions from time-series data--deflating the aggregate data by population and prices, deflating by prices only, or using nominal data undeflated by population or prices--are mathematically equivalent when the data are dominated by time trend. Differences in regressions based on the three aggregation procedures have nothing to do with the degree of homogeneity in population and prices, as is often claimed, but merely reflect common time trends in the data. The model is seen to provide good agreement with data from three countries. In his restatement of the quantity theory, Friedman (1956) develops the two central themes of the "new monetarists." First, the quantity theory is a theory of the demand for real money balances rather than a theory of the price level. Second, the quantity theory rests on the empirical generalization that the demand for money, defined over some narrow group of financial assets such as currency, demand deposits, and time deposits, is stable over time. The stable demand function implies that any change in the narrow group of financial assets (the money supply) will have a direct impact on expenditure decisions. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y dt: @attributes: year: 1974 holdings: @attributes: islocal: N |
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