A Closer Look at Long-run U.S. Money Demand: Linear or Nonlinear Error-Correction with M0, M1, or M2?
We study annual U. S. data from 1869 or 1900 to 1999. We find evidence for a well-specified and stable model of money demand with data from 1946 to 1999. We carry out diagnostic and stability tests, including linearity tests. A linear error-correction model with the monetary base performs better tha...
| Publicado en: | Economic Inquiry Vol. 45; no. 2; pp. 363 - 377 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
April 2007
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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=ssf&AN=510606706&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 510606706 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: April 2007 vid: 45 iid: 2 pid: 480 pub: Wiley-Blackwell artinfo: ui: 510606706 10.1111/j.1465-7295.2006.00007.x ppf: 363 ppct: 14 formats: fmt: – @attributes: type: T – @attributes: type: P size: 1.1MB tig: atl: A Closer Look at Long-run U.S. Money Demand: Linear or Nonlinear Error-Correction with M0, M1, or M2? aug: au: Haug, Alfred A. Tam, Julie su: Demand for money Mathematical models of economics History of money sug: subj: Demand for money Mathematical models of economics History of money ab: We study annual U. S. data from 1869 or 1900 to 1999. We find evidence for a well-specified and stable model of money demand with data from 1946 to 1999. We carry out diagnostic and stability tests, including linearity tests. A linear error-correction model with the monetary base performs better than a model with Ml. A specification with M2 is not supported. We use real gross national product as the scale variable and a short-term interest rate as the opportunity cost measure. We estimate an income elasticity of 0.86 and an interest rate elasticity of-0.44 for the monetary base (JEL E41) 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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