 Dynamic Specification of The Demand for Currency. An Application of Co-integration Techniques. Argentina 1977-1988Brazilian Review of Econometrics, 1989, vol. 9, issue 1 Abstract: This study presents a model of the demand for currency in a complex highly-inflationary enviroment: Argentina 1977-1988. The econometric serach of a model - which can be considered as a satisfactory approximation of the data generating process o real cash balances - focussed, at this stage, on a group of "basics" variables given by usuak economic theories of the demand for money. Firstly, the porpuse is to concentrate on the "long-run" determinants usingt an information set which includes interest rates, domestic prices and transactions. Co-integration technics, proposed by Granger and Engle (1987) are applied in order to evaluate a "long-run" hypothesis. Data information are also used to specify the dynamic of the model following the methodology "general - to - particular" developed by Hendry et. al. The model selected incorporates a linear correction mechanism and an asymetric effect mof inflation. It has a suitable economic interpretation and satisfied a set of criteria to be considered as a "tentative" approximation to be underlying data generating process of real cash balances. Date: 1989 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sbe:breart:v:9:y:1989:i:1:a:3079 Access Statistics for this article Brazilian Review of Econometrics is currently edited by Daniel Monte More articles in Brazilian Review of Econometrics from Sociedade Brasileira de Econometria - SBE Contact information at EDIRC. |
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