Evaluating structural relations between money demand and its determinants

Determinants of Money Demand in Pakistan: Disaggregated Expenditure Approach

Submitted: Jul 2, 2013; Accepted: Aug 14, 2013; Published: Aug 29, 2013 Abstract: The main focus of the study is to find the determinants of money demand in Pakistan. We used disaggregated expenditures approach in this regard. To find the co-integration among the variables of the model, Johansen co-integration approach is utilized. The results of the study show that the co-integration exists am...

Structural Break, Stability and Demand for Money in India1

This paper attempts to take a meticulous look on stability of money demand in India Using annual data for period 1953-2007 and the Hansen (1992) and Gregory Hansen (1996) co-integration approaches with structural break. Results of the Gregory Hansen (1996) cointegration analysis show the presence of cointegration in demand for money, real GDP and nominal interest rate with structural break at 1...

The Stability of Demand for Money and its Dynamic Aspects in Iran

Australasian money demand stability: Application of structural break tests

Estimates of the demand for money provide important foundations for monetary policy setting but if the estimation technique does not explicitly account for structural changes then such estimates will be biased. This paper presents an investigation into the level and stability of money demand (M1) for Australia and New Zealand over the 1960-2009 period and demonstrates that both countries experi...

A New Nonlinear Specification of Structural Breaks for Money Demand in Iran

In a structural time series regression model, binary variables have been used to quantify qualitative or categorical quantitative events such as politic and economic structural breaks, regions, age groups and etc. The use of the binary dummy variables is not reasonable because the effect of an event decreases (increases) gradually over time not at once. The simple and basic idea in this paper i...