Estimating money demand functions for South Asian countries
Data(s) |
01/06/2009
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Resumo |
In this paper, we estimate a money demand function for a panel of five South Asian countries. We find that the money demand and its determinants, namely real income, real exchange rate and short-term domestic and foreign interest rates are cointegrated both for individual countries as well as for the panel, and panel long-run elasticities provide robust evidence of statistically significant relationships between money demand and its determinants. Our test for panel Granger causality suggests short-run causality running from all variables, except foreign interest rate, to money demand, and we find evidence that except for Nepal money demand functions are stable.<br /> |
Identificador | |
Idioma(s) |
eng |
Publicador |
Physica Verlag |
Relação |
http://dro.deakin.edu.au/eserv/DU:30016643/n2009_Narayan_estimating_money_demand.pdf http://dx.doi.org/10.1007/s00181-008-0219-9 |
Direitos |
2008, Springer-Verlag |
Palavras-Chave | #money demand function #cash-in-advance model #panel cointegration #panel Granger causality |
Tipo |
Journal Article |