Relative prices in the UK personal sector money demand function.

A study was conducted using Varian's (1982) nonparametric technique of demand analysis to establish whether various subgroupings of monetary assets are weakly separable in a fully specified utility function containing goods, services, leisure, and monetary assets and whether commodities/goods are we...

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Bibliographic Details
Published in:Economic Journal Vol. 106; pp. 1209 - 1227
Main Author: Drake, Leigh
Format: Article
Published: Wiley-Blackwell September 1996
Subjects:
Online Access:View this record in EBSCOhost
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      dt: September 1996
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      pub: Wiley-Blackwell
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        atl: Relative prices in the UK personal sector money demand function.
      aug:
        au: Drake, Leigh
      su:
        Mathematical models of economics
        Demand for money
        Nonparametric statistics
        Mathematical models of consumption
        Commercial products
        Prices -- Mathematical models
      sug:
        subj:
          Mathematical models of economics
          Demand for money
          Nonparametric statistics
          Mathematical models of consumption
          Commercial products
          Prices -- Mathematical models
      keyword: Prices -- Great Britain -- Mathematical models
      ab: A study was conducted using Varian's (1982) nonparametric technique of demand analysis to establish whether various subgroupings of monetary assets are weakly separable in a fully specified utility function containing goods, services, leisure, and monetary assets and whether commodities/goods are weakly separable in the consumer's utility function. Findings from long-run cointegration analysis, short-run error correction models, and non-nested testing confirmed that relative prices play a role in the money demand function of the personal sector in the U.K., with the relative prices of durables, nondurables, and services appearing to be significant explanatory variables in the long-run money demand specification. In addition, the findings suggested that the conventional money demand specification has a tendency to overestimate the personal sector's speed of adjustment of money holdings in response to disequilibrium.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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