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The stability of long-run money demand in the United States: A new approach

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  • Wang, Yiming

Abstract

In this paper, we search for cointegration relation and determine the location of the changes in the long-run money demand in the US. We use the same data set as the previous studies and find that there are two regime changes.

Suggested Citation

  • Wang, Yiming, 2011. "The stability of long-run money demand in the United States: A new approach," Economics Letters, Elsevier, vol. 111(1), pages 60-63, April.
    • Handle: RePEc:eee:ecolet:v:111:y:2011:i:1:p:60-63
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    References listed on IDEAS

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    1. MacKinnon, James G & Haug, Alfred A & Michelis, Leo, 1999. "Numerical Distribution Functions of Likelihood Ratio Tests for Cointegration," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(5), pages 563-577, Sept.-Oct.
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    Cited by:

    1. Miller, Stephen M. & Martins, Luis Filipe & Gupta, Rangan, 2019. "A Time-Varying Approach Of The Us Welfare Cost Of Inflation," Macroeconomic Dynamics, Cambridge University Press, vol. 23(2), pages 775-797, March.
    2. repec:ipg:wpaper:2014-474 is not listed on IDEAS
    3. Anderson, Richard G. & Bordo, Michael & Duca, John V., 2017. "Money and velocity during financial crises: From the great depression to the great recession," Journal of Economic Dynamics and Control, Elsevier, vol. 81(C), pages 32-49.
    4. Muhammad Zubair Mumtaz & Zachary Alexander Smith & Naoyuki Yoshino, 2025. "Cryptocurrencies, Money Demand, And Monetary Policy," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 28(2), pages 293-312, July.
    5. Karsten Schweikert, 2020. "Oracle Efficient Estimation of Structural Breaks in Cointegrating Regressions," Papers 2001.07949, arXiv.org, revised Apr 2021.
    6. Karsten Schweikert, 2022. "Oracle Efficient Estimation of Structural Breaks in Cointegrating Regressions," Journal of Time Series Analysis, Wiley Blackwell, vol. 43(1), pages 83-104, January.
    7. Afsin Sahin, 2013. "Estimating Money Demand Function by a Smooth Transition Regression Model: An Evidence for Turkey," Working Papers 791, Economic Research Forum, revised Nov 2013.
    8. Ufuk CAN & Zeynep Gizem CAN & Süleyman DEĞİRMEN, 2019. "Paranın Dolaşım Hızının ve Para Talebi Fonksiyonunun Ekonometrik Analizi: Türkiye Örneği," Istanbul Business Research, Istanbul University Business School, vol. 48(2), pages 218-247, November.
    9. Matteo Mogliani & Giovanni Urga, 2018. "On the Instability of Long‐Run Money Demand and the Welfare Cost of Inflation in the United States," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 50(7), pages 1645-1660, October.
    10. Ifeoma Enemuo Joy & Abner Ishaku Prince & Edet Inim Victor & Akpan Boniface L. & Gift Rotimi Grace & Udo Emmanuel Samuel, 2025. "Stability of Money Demand in Sub-Saharan Africa: A Cross-Sectional ARDL Analysis by Income Levels," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 35(4), pages 78-103.
    11. Mohsen Bahmani-Oskooee & Majid Maki-Nayeri, 2018. "Asymmetric Effects of Policy Uncertainty on the Demand for Money in the United States," JRFM, MDPI, vol. 12(1), pages 1-13, December.

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