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The effect of regime shifts on the long-run relationships for Swedish money demand

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  • R. Scott Hacker
  • Abdulnasser Hatemi-J

Abstract

When the possibility of an unknown structural break is allowed and it is taken into account we find a significant long-run relationship between Swedish money demand and its determinants that is not found when no break is considered. The estimated elasticities show that money demand is more responsive to its determinants in the period after the break than before. Possible underlying reasons for the occurrence of this break and its implications are explained.

Suggested Citation

  • R. Scott Hacker & Abdulnasser Hatemi-J, 2005. "The effect of regime shifts on the long-run relationships for Swedish money demand," Applied Economics, Taylor & Francis Journals, vol. 37(15), pages 1731-1736.
    • Handle: RePEc:taf:applec:v:37:y:2005:i:15:p:1731-1736
    DOI: 10.1080/00036840500215444
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    References listed on IDEAS

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    Cited by:

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    3. Rafiq, Shuddhasawtta & Salim, Ruhul & Bloch, Harry, 2009. "Impact of crude oil price volatility on economic activities: An empirical investigation in the Thai economy," Resources Policy, Elsevier, vol. 34(3), pages 121-132, September.

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