A Theorem Regarding Elasticities on the Transactions Demand for Money

Ross Milbourne

Working Paper from Economics Department, Queen's University

Abstract: This paper considers the class of inventory-theoretic transactions demand for money models and proves the following theorem: the sum of the income elasticity of money demand plus the absolute value of the interest elasticity is equal to unity. This result if often ignored in empirical simulation studies and Bayesian estimation.

Pages: 6 pages
Date: 1987
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:714

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 ().