Exogeneity within the M2 Demand Function: Evidence from a Large Macroeconomic System.
A large body of literature investigates whether a stable and predictable long-run association between money and its arguments exists. One point of variation between models is whether to include an interest rate measure directly within the long-run relationship. Several recent studies indicate that e...
| Published in: | Economic Inquiry Vol. 42; no. 4; pp. 634 - 647 |
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| Format: | Article |
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Wiley-Blackwell
October 2004
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| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=510400278&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 510400278 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00952583 EIQ jtl: Economic Inquiry issn: 00952583 maglogo: N pubinfo: dt: October 2004 vid: 42 iid: 4 pid: 480 pub: Wiley-Blackwell artinfo: ui: 510400278 10.1093/ei/cbh086 ppf: 634 ppct: 13 formats: fmt: – @attributes: type: T – @attributes: type: P size: 1.1MB tig: atl: Exogeneity within the M2 Demand Function: Evidence from a Large Macroeconomic System. aug: au: Schmidt, Martin B. su: Mathematical models of interest rates Mathematical models of economics Demand for money Macroeconomics sug: subj: Mathematical models of interest rates Mathematical models of economics Demand for money Macroeconomics ab: A large body of literature investigates whether a stable and predictable long-run association between money and its arguments exists. One point of variation between models is whether to include an interest rate measure directly within the long-run relationship. Several recent studies indicate that empirical findings are sensitive to the choice. Therefore, the present article reexamines the empirical significance of the interest rate within a four-equation macroeconomic system. The results suggest that the interest rate (1) may be excluded from the M2 demand function, (2) is strongly exogenous to most of the system's remaining variables, and (3) may represent a common trend. (JEL E41, E52, C32) Reprinted by permission of the publisher. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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