Empirical evidence for a money demand functiona panel data analysis of 27 countries in 1988-98

  1. GARCIA-HIERNAUX, Alfredo 1
  2. CERNO, Leonel 2
  1. 1 Facultad de Ciencias Económicas y Empresariales, Campus de Somosaguas, Madrid,
  2. 2 Universidad Europea de Madrid
    info

    Universidad Europea de Madrid

    Madrid, España

    ROR https://ror.org/04dp46240

Aldizkaria:
Applied econometrics and international development

ISSN: 1578-4487

Argitalpen urtea: 2006

Alea: 6

Zenbakia: 1

Orrialdeak: 51-58

Mota: Artikulua

DIALNET GOOGLE SCHOLAR lock_openSarbide irekia editor

Beste argitalpen batzuk: Applied econometrics and international development

Laburpena

The purpose of this paper is to estimate the money demand function of Cagan (1956) using a panel data set covering 27 countries with different economic levels over the period 1988-98. The static and dynamic fixed effects reveal that a money demand equation exists. However, in contrast to the theory proposed by Cagan, estimates of the output elasticity of money demand are in the range from 0.18 to 0.20.

Erreferentzia bibliografikoak

  • Arellano, M. and S. Bond (1988) Dynamic Panel Data Estimation using DPD - A guide for Users. Working Paper nº 88/15, The Institute of Fiscal Studies, London.
  • Beyer, A. (1998) “Modelling Money Demand in Germany”. Journal of Applied Econometrics 13, 57-76-
  • Brand, C. and Cassola, N. (2004) “A Money Demand System for Euro Area M3” Applied Economics, 36(8), 817-838.
  • Cagan, P. (1956) The Monetary Dynamics of Hiperinflation. Studies in the Quantity Theory of Money, 25-117. University of Chicago Press. Chicago.
  • Dekle, R. and Pradhan, M. (1999) “Financial Liberalization and Money Demand in the ASEAN Countries” International Journal of Finance & Economics, 4,3,205-215.
  • FMI (1999) International Financial Statistics. Yearbook.
  • Fujiki, H., Hsiao, C. and S. Yan (2002) “Is There a Stable Money Demand Function under the Low Interest Rate Policy? A Panel Data Analysis” , Monetary and Economic Studies, April.
  • Garín, T. and T. Pérez Amaral (2000) “An Econometric Model for International Tourism Flows to Spain” Applied Economics Letters, 7, 525-529.
  • Hsiao, C. (1986) Analysis of Panel Data. Cambridge University Press. Cambridge.
  • Lütkepohl, H. and J. Wolters (1998) “A money demand system for german M3” Empirical Economics, 23, 371-386.
  • Lucas, R. (1988) “Money demand in the United States: A quantitative review”, CarnegieRochester Conference Series on Public Policy, 29, 137-168.
  • Mulligan, C. and X. Sala-i-Matin (1992) “U.S. money demand: Surprising cross-sectional estimates” Brooking Papers on Economic Activity, 2, 285-343.
  • Nasri, H. (2004) “Money Demand Function: A Heterogeneous Panel Application” Applied Economics Letters, 11(9), 551-555.
  • Nielsen, B. (2004) “Money Demand in the Yugoslavian Hyperinflation 1991-1994” Discussion Paper Nuffield College, Oxford University.
  • Özmen, E. (1998) “Is Currency Seigniorage Exogenous for Inflation Tax in Turkey?” Applied Economics, 30, 545-552.
  • Selcuk, F. (2001) “Seigniorage, Currency Substitution and Inflation in Turkey” Russian and East European Finance and Trade, 37, 41-50.
  • Torsen, S. (2002) “Money Demand in Mongolia: A Panel Data Analysis” IMF staff papers, 19,1, 128-135.
Datuen iturria: Dialnet