The demand for money in Austria
Bernd Hayo ()
Empirical Economics, 2000, vol. 25, issue 4, pages 581-603
In this paper, the demand for real money M1, M2, and M3 is estimated for Austria over the time period 1965-96. The modelling takes place within the framework of a small vector autoregression. To estimate the demand for money, two-equation error-correction models are constructed, which contain the short-run dynamics and the long-run economic equilibrium. It is found that a stable money demand exists for all monetary aggregates. The long-run equilibrium of M1, after accounting for a structural break in 1979, can be characterised as a classical type of money demand, with no interest rate effects and an elasticity of one for real GDP. In the case of M2 and M3, we find a unit coefficient on income and a significantly negative influence of a long-term interest rate. The statistical properties of the estimated short-run money demand equations - considering in-sample and out-of-sample tests - are generally very good.
Keywords: monetary; economics; ·; money; demand; ·; Austria; ·; European; Monetary; Union (search for similar items in EconPapers)
JEL-codes: E41 C32 (search for similar items in EconPapers)
Note: received: October 1996/Final version received: April 2000
References: Add references at CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Access to the full text of the articles in this series is restricted
Working Paper: The demand for money in Austria (2000)
Working Paper: The Demand For Money In Austria (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:spr:empeco:v:25:y:2000:i:4:p:581-603
Ordering information: This journal article can be ordered from
Access Statistics for this article
Empirical Economics is currently edited by Robert M. Kunst, Badi H. Baltagi, Heather M. Anderson, Subal C. Kumbhakar and Michael Lechner
More articles in Empirical Economics from Springer
Contact information at EDIRC.
Series data maintained by Guenther Eichhorn ().