Cointegration, error correction models and forecasting the U.K demand for money
- García Ferrer, Antonio
- Novales Cinca, Alfonso
Ano de publicación: 1995
Número: 2
Páxinas: 1-22
Tipo: Documento de traballo
Resumo
We analyze in this paper the ability of recent methodologial developments for nonstationary variables, to overcome the traditional instability of money demand functions. We use a popular UK sample for 1964-82 to specify and estimate an error correction model, whose forecasting ability is then compared with that of alternative, reduced form specifications.