IDEAS home Printed from
   My bibliography  Save this article

Disaggregated Approach For Modelling Demand For Money In Pakistan


  • Muhammad Aslam KHAN*
  • Muhammad Farooq ARBY**
  • Muhammad Amin Khan LODHI**



The objective of the paper is to estimate a separate demand function for component of M2 in Pakistan, by using c~integration and error-correction techniques, based on the annual data set for the period of 1971-72 to 1998-99. Results show that currency in circulation and demand deposits are inelastic to interest rates and exchange rates, but highly elastic to income. On the contrary, quasi money is elastic to interest rates and exchange rates ,and inelastic to income changes.

Suggested Citation

  • Muhammad Aslam KHAN* & Muhammad Farooq ARBY** & Muhammad Amin Khan LODHI**, 2000. "Disaggregated Approach For Modelling Demand For Money In Pakistan," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 16, pages 65-77.
  • Handle: RePEc:pje:journl:article2000ii

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Yu Hsing, 2007. "Currency Substitution, Capital Mobility and Functional Forms of Money Demand in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 12(1), pages 35-48, Jan-Jun.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pje:journl:article2000ii. 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: (Samina Khalil). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.