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An Application of an Error Correction Model with Higher Order Cointegrated Variables to the Demand for Money in Switzerland

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Author Info
Jaya Krishnakumar
El-Hadji Gueye
Abstract

This paper applies the maximum likelihood technique to estimate the parameters of a money demand equation for Switzerland in which there are variable integrated of different orders and in particular of order greater than 1. The estimation method developed by the authors has been explained in detail in Krishnakumar and Gueye (1998) which also derives the limiting distributions of the resulting estimators. The procedure was implemented in MATLAB for estimating our empirical model.

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Publisher Info
Paper provided by Département d'Econométrie, Université de Genève in its series Cahiers du Département d'Econométrie with number 98.04.

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Length: 21 pages
Date of creation: 1998
Date of revision:
Handle: RePEc:gen:geneem:98.04

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Related research
Keywords: Unit Roots ; Cointegration ; Money ; Models;

Find related papers by JEL classification:
C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions
E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money

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