On the Reinterpretation of Money Demand Regressions
AbstractA stylized fact concerning estimated money demand relationships is that lagged dependent variables have high explanatory power and large estimated coefficients, which is hard to explain at a theoretical level. Marvin S. Goodfriend (1985) suggests that this may be due to the presence of serially correlated measurement errors in the independent variables. The author demonstrates how consistent estimates of the short-run demand function can be obtained even if the Goodfriend hypothesis is accepted and also how the hypothesis might be tested. Application of the suggested test using the Goldfeld (1973) data set leads to decisive rejection of the hypothesis. Copyright 1994 by Ohio State University Press.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Blackwell Publishing in its journal Journal of Money, Credit and Banking.
Volume (Year): 26 (1994)
Issue (Month): 4 (November)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- B. Bhaskara Rao & Saten Kumar, 2009.
"Cointegration, structural breaks and the demand for money in Bangladesh,"
Taylor & Francis Journals, vol. 41(10), pages 1277-1283.
- Rao, B. Bhaskara & Kumar, Saten, 2007. "Cointegration, structural breaks and the demand for money in Bangladesh," MPRA Paper 1546, University Library of Munich, Germany.
- B Bhaskara Rao & Singh Rup, 2005.
"Demand for Money in India: 1953-2003,"
- Marvasti, A. & Smyth, David J., 1999. "The effect of barter on the demand for money: an empirical analysis," Economics Letters, Elsevier, vol. 64(1), pages 73-80, July.
- Kevin S. Nell, 1999. "The Stability of Money Demand in South Africa, 1965-1997," Studies in Economics 9905, Department of Economics, University of Kent.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.