IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Effects of monetary variables on real output: sensitivity analysis

Listed author(s):
  • Habib Ahmed
  • Pami Dua

This paper uses Leamer's sensitivity test in a VAR framework and examines the robustness of the relationship between different monetary and output variables. Output variables at the aggregated level include GDP, consumption, and gross private investment. Disaggregated variables comprise components of consumption (durables, non-durables and services) and investment (business inventories, fixed residential, and fixed nonresidential). All aggregated variables are robustly Granger caused by M2, the federal funds rate and the federal funds 3-months treasury rate spread. At the disaggregated level, only consumption of durables is Granger caused by these variables. Consumption of services, business inventories, and non-residential fixed investment are only Granger caused by money supply variables, while consumption of non-durable goods and residential investment are Granger caused by interest rates and/or interest rate spreads only.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 8 (2001)
Issue (Month): 1 ()
Pages: 65-69

in new window

Handle: RePEc:taf:apeclt:v:8:y:2001:i:1:p:65-69
DOI: 10.1080/135048501750041321
Contact details of provider: Web page:

Order Information: Web:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:8:y:2001:i:1:p:65-69. 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: (Michael McNulty)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.