A dynamic asymptotically ideal model of money demand

• 成果类型: Article
• 署名作者: Fleissig, A; Swofford, JL
• 署名单位: University of South Alabama; Saint Louis University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(96)90041-0
• 发表日期: 1996
• 页码: 371-380
• 关键词: demand system; Morishima elasticities

摘要

We estimate a dynamic asymptotically ideal model of a system of money demand equations. This specification allows incomplete portfolio adjustment. We base our policy conclusions on Morishima elasticities, because as Blackorby and Russell (1989) show, the Allen-Uzawa elasticities can give misleading results. We find that cash assets, savings deposits, and small time deposits are all substitutes for each other. These results imply that monetary authorities should target a relatively broad monetary aggregate that includes these assets, if policy is to have predictable effects on the economy.