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Demand for Money in the Selected OECD Countries: A Time Series Panel Data Approach and Structural Breaks

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  • Kumar, Saten
  • Chowdhury, Mamta
  • Rao, B. Bhaskara

Abstract

Time series panel data estimation methods are used to estimate cointegrating equations for the demand for money (M1) for a panel of 11 OECD countries. The effects of financial reforms are analysed with structural break tests and estimates for alternative sub-samples. Our results in the post-reforms sub-samples show that the income elasticity of the demand for money has decreased and response to interest rate changes has increased.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 22204.

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Date of creation: 10 Apr 2010
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Handle: RePEc:pra:mprapa:22204

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Keywords: Demand for money; Pedroni FMOLS; financial reforms;

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Cited by:
  1. Frauke Dobnik, 2013. "Long-run money demand in OECD countries: what role do common factors play?," Empirical Economics, Springer, vol. 45(1), pages 89-113, August.
  2. Frauke Dobnik, 2011. "OLong-run Money Demand in OECD Countries – Cross-Member Cointegration," Ruhr Economic Papers 0237, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.

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