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Money Demand in theEuroArea: Do National Differences Matter? Author info | Abstract | Publisher info | Download info | Related research | Statistics Luca Dedola (Bank of Italy)
Eugenio Gaiotti (Bank of Italy)
Luca Silipo (Bank of Italy)
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This paper assesses the relevance of national information in estimating the demand for euro-area M3 from three perspectives. First, we check whether national money demands can legitimately be aggregated. Second, we compare time-series and panel methods to estimate aggregate long-run coefficients. Finally, we investigate the differences among national money demands. We find that the hypothesis of perfect aggregation is not rejected. Nevertheless, some estimates of area-wide long-run parameters are sensitive to the method used to combine national information. The main difference among individual countries’ money demands is their interest elasticity.
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Paper provided by EconWPA in its series Macroeconomics with number
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Date of creation: 24 Apr 2004Date of revision:
24 Apr 2004Handle: RePEc:wpa:wuwpma:0404019Note: Type of Document - pdfContact details of provider: Web page: http://129.3.20.41
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Keywords: money demand ; aggregation ; European Central Bank. ; Other versions of this item:
Find related papers by JEL classification: E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
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