ALTERNATIVE TEMPORAL CROSS-SECTION SPECIFICATIONS OF THE DEMAND FOR DEMAND DEPOSITS

Edgar L .Feige ()

Macroeconomics from EconWPA

Abstract: This paper examines a broad set of alternative temporal cross- section specifications of the demand for money as a means of estimating the degree of substitution between demand deposits and other liquid assets. Despite differences in data bases, model specifications and estimation techniques, the results are surprisingly robust; suggesting that the own rate of return on demand deposits is an important argument of the demand function ; that other liquid assets are relatively weak substitutes for demand deposits; and that the income elasticity of demand deposits is less than unity. Reference: The Journal of Finance, Vol. XXIX No. 3, June 1974.

Keywords: Money demand; substitutibility; liquid assets; temporal cross- section specifications; income elasticity. (search for similar items in EconPapers)
JEL-codes: E41 E42 C1 C31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac and nep-mon
Date: 2005-02-02
Note: Type of Document - pdf; pages: 18

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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpma:0502009

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