An Annual Money Demand Function for Pakistan: Some Further Results

Some Further Investigations of Demand and Supply Functions for Money

The Demand for Money by Firms: Some Additional Empirical Results*

COMPUSTAT data on 12,000 firms for the years 1956–1992 indicate that large firms hold less cash as a percentage of sales than do small ones. Whether comparisons are made within or across industries, the elasticity of cash balances with respect to sales is about 0.75. Firms headquartered in counties with high wages hold more money for a given level of sales, a finding consistent with the idea th...

An Econometric Estimation of Traditional Import Demand Function for Pakistan

Many studies have estimated the aggregate import demand function for Pakistan by using non-stationary data. Their findings suffer from the so-called ‘spurious regression’ problem. This study attempts to estimate the aggregate import demand function for Pakistan by employing Johansen and Juselius cointegration technique on the annual data for the period 1975-2005. Our results show that there is ...

Estimating a Function of Real Demand for Money in Pakistan: An Application of Bounds Testing Approach to Cointegration

This paper attempts to model a real demand for money function of Pakistan. For this purpose we apply bounds test based cointegration technique using the time series data for the period 1973 to 2010. Our findings included three determinants: 1) real income and 2) foreign exchange contain positive relation as well as for both long run and short run dynamics they are the most significant factors o...

Estimating a Function of Real Demand for Money in Pakistan: An Application of Bounds Testing Approach to Cointegration

This paper attempts to model a real demand for money function of Pakistan. For this purpose we apply bounds test based cointegration technique using the time series data for the period 1973 to 2010. Our findings included three determinants: 1) real income and 2) foreign exchange contain positive relation as well as for both long run and short run dynamics they are the most significant factors o...