An Application of the Box-Cox Transformation to Money Demand in Canada

Allan Gregory

Working Paper from Economics Department, Queen's University

Abstract: This paper investigates the functional form of money demand in Canada using the Box-Cox transformation. This framework permits the testing of the partial adjustment process within the specification of the demand function. While the partial adjustment process is acceptable to the data, the traditional double-logarithm specification is not. The evidence points to a reciprocal form which is structurally stable. However, once postal strikes are accounted for, the double-logarithmic equation is stable and this specification cannot be rejected.

Pages: 32
Date: 1980
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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: https://EconPapers.repec.org/RePEc:qed:wpaper:388

Access Statistics for this paper

More papers in Working Paper from Economics Department, Queen's University Contact information at EDIRC.
Bibliographic data for series maintained by Mark Babcock ().