Community banks, money and labour productivity
Bert J. Smoluk
Economic Notes, 2020, vol. 49, issue 1
Does money affect productivity? We examine whether bank deposits, a measure of the money supply that excludes currency in circulation, influence labour productivity. Banks deposits are special in that they facilitate transactions and, in aggregate, add liquidity and credit availability to a region. By exploiting the distribution of community bank deposits across the states, we test the hypothesis that money is an input to the production function under a variety of panel data methods. We find evidence that bank transaction deposits and total deposits along with other production function inputs such as wages, labour and gross state product are cointegrated across the states; however, the economic contribution of money to labour productivity appears limited.
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:ecnote:v:49:y:2020:i:1:n:e12154
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0391-5026
Access Statistics for this article
More articles in Economic Notes from Banca Monte dei Paschi di Siena SpA
Bibliographic data for series maintained by Wiley Content Delivery ().