Revisiting the US money demand function: an application of the Lagrange multiplier structural break unit root test and the bounds test for a long-run relationship
Data(s) |
01/04/2008
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Resumo |
In this article, we examine the issue of a levels relationship and stability of the US money demand function over the period 1959:01 to 2004:02. We use the Lagrange multiplier structural break unit root test and the bounds testing approach to a long-run relationship in levels of the variables, namely real money demand, nominal interest rate and real income. We find greater evidence for a long-run relationship in levels and stability of the US money demand function when we use M2 as a proxy for money demand. However, we find little evidence for a long-run relationship between M1 and M2 with their determinants for the recent period, spanning the last decade or so. <br /> |
Identificador | |
Idioma(s) |
eng |
Publicador |
Routledge |
Relação |
http://dro.deakin.edu.au/eserv/DU:30017254/narayan-revisitingtheus-2008.pdf http://dx.doi.org/10.1080/00036840600749813 |
Direitos |
2008, Taylor & Francis |
Tipo |
Journal Article |