Demand for Money in the Selected OECD Countries: A Time Series Panel Data Approach and Structural Breaks

Saten Kumar, Mamta Chowdhury () and B. Rao

MPRA Paper from University Library of Munich, Germany

Abstract: Time series panel data estimation methods are used to estimate cointegrating equations for the demand for money (M1) for a panel of 11 OECD countries. The effects of financial reforms are analysed with structural break tests and estimates for alternative sub-samples. Our results in the post-reforms sub-samples show that the income elasticity of the demand for money has decreased and response to interest rate changes has increased.

Keywords: Demand for money; Pedroni FMOLS; financial reforms (search for similar items in EconPapers)
JEL-codes: C33 E41 (search for similar items in EconPapers)
Date: 2010-04-10
New Economics Papers: this item is included in nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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