Money Balances in the Production Function: A Retrospective Look
This paper surveys the literature on real balances in the production function since Sinai-Stokes (1972). The discussion has now moved beyond the question of real balances belonging in the production function to the issue of how to model the effect of the financial sector on the real economy. Results reported argue that the effect of the degree of optimality of the financial sector (as measured by the interest rate) is a significant shift parameter in the production function. While this specification may be improved on in future work, results to date indicate that an aggregate production function that does not take into account the effects of the financial sector is not completely specified.
Volume (Year): 15 (1989)
Issue (Month): 4 (Oct-Dec)
|Contact details of provider:|| Postal: |
Phone: (201) 684-7346
Web page: http://www.ramapo.edu/eea/journal.html
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Short, Eugenie Dudding, 1979. "A New Look at Real Money Balances as a Variable in the Production Function," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 11(3), pages 326-39, August.
- Keith Christian Jensen & Shyam Kamath & Robert Bennett, 1987. "Money in the Production Function: An Alternative Test Procedure," Eastern Economic Journal, Eastern Economic Association, vol. 13(3), pages 259-269, Jul-Sep.
- Prais, Zmira, 1975. "Real Money Balances as a Variable in the Production Function: A Comment," The Review of Economics and Statistics, MIT Press, vol. 57(2), pages 243-44, May.
- Ben-Zion, Uri & Ruttan, Vernon W, 1975. "Money in the Production Function: An Interpretation of Empirical Results," The Review of Economics and Statistics, MIT Press, vol. 57(2), pages 246-47, May.
- Subrahmanyam, Ganti, 1980. "Real Money Balances as a Factor of Production: Some New Evidence," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 280-83, May.
- Nadiri, M Ishaq, 1969. "The Determinants of Real Cash Balances in the U.S. Total Manufacturing Sector," The Quarterly Journal of Economics, MIT Press, vol. 83(2), pages 173-96, May.
- Pierson, Gail, 1972. "The Role of Money in Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 86(3), pages 383-95, August.
- Moroney, John R, 1972. "The Current State of Money and Production Theory," American Economic Review, American Economic Association, vol. 62(2), pages 335-43, May.
- Otto Eckstein & Allen Sinai, 1986. "The Mechanisms of the Business Cycle in the Postwar Era," NBER Chapters, in: The American Business Cycle: Continuity and Change, pages 39-122 National Bureau of Economic Research, Inc.
- Johnson, Harry G, 1969. "Inside Money, Outside Money, Income, Wealth, and Welfare in Monetary Theory," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(1), pages 30-45, February.
- Boyes, William J & Kavanaugh, David C, 1979. "Money and the Production Function: A Test for Specification Errors," The Review of Economics and Statistics, MIT Press, vol. 61(3), pages 442-46, August.
- Niccoli, Alberto, 1975. "Real Money Balances: An Omitted Variable from the Production Function? A Comment," The Review of Economics and Statistics, MIT Press, vol. 57(2), pages 241-43, May.
- Dufour, Jean-Marie, 1982. "Recursive stability analysis of linear regression relationships: An exploratory methodology," Journal of Econometrics, Elsevier, vol. 19(1), pages 31-76, May.
- Jong S. You, 1981. "Money, Technology, and the Production Function: An Empirical Study," Canadian Journal of Economics, Canadian Economics Association, vol. 14(3), pages 515-24, August.
- Nguyen, Hong V, 1986. "Money in the Aggregate Production Function: Reexamination and Further Evidence," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 18(2), pages 141-51, May.
- Milton Friedman & Anna Jacobson Schwartz, 1970. "Monetary Statistics of the United States: Estimates, Sources, Methods," NBER Books, National Bureau of Economic Research, Inc, number frie70-1, August.
When requesting a correction, please mention this item's handle: RePEc:eej:eeconj:v:15:y:1989:i:4:p:349-363. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Victor Matheson, College of the Holy Cross)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.