Shoe-leather costs reconsidered

Jagjit S. Chadha (), Andrew Haldane and Norbert Janssen

Bank of England working papers from Bank of England

Abstract: It has recently been suggested by Robert Lucas that `shoe-leather' costs of inflation may amount to as much as 1% of GNP in the United States. This paper assesses the UK evidence for the period 1970-1994. Similar estimates to those of Lucas are found using his original specification, but a preferred functional form using a semi-log interest elasticity of demand for money reveals a 0.22 % of GNP gain in perpetuity following a sustained fall in nominal interest rates from 6% to 2%.

View list of references View citations in EconPapers

Downloads: (external link)
http://www.bankofengland.co.uk/publications/workingpapers/wp86.pdf (application/pdf)

Related works:
Journal Article: Shoe-Leather Costs Reconsidered (1998)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:boe:boeewp:86

Access Statistics for this paper

More papers in Bank of England working papers from Bank of England
Address: Publications Group Bank of England Threadneedle Street London EC2R 8AH
Contact information at EDIRC.
Series data maintained by Publications Group ().