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Demand for Money in the Selected OECD Countries: A Time Series Panel Data Approach and Structural Breaks

  • Kumar, Saten
  • Chowdhury, Mamta
  • Rao, B. Bhaskara

Time series panel data estimation methods are used to estimate cointegrating equations for the demand for money (M1) for a panel of 11 OECD countries. The effects of financial reforms are analysed with structural break tests and estimates for alternative sub-samples. Our results in the post-reforms sub-samples show that the income elasticity of the demand for money has decreased and response to interest rate changes has increased.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 22204.

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Date of creation: 10 Apr 2010
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Handle: RePEc:pra:mprapa:22204
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  1. Laurence Ball, 1998. "Another Look at Long-Run Money Demand," NBER Working Papers 6597, National Bureau of Economic Research, Inc.
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  5. Rao, B. Bhaskara & Kumar, Saten, 2009. "Is the US Demand for Money Unstable?," MPRA Paper 15715, University Library of Munich, Germany.
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  9. Orden, David & Fisher, Lance A, 1993. "Financial Deregulation and the Dynamics of Money, Prices, and Output in New Zealand and Australia," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 25(2), pages 273-92, May.
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