Estimating money demand functions for South Asian countries |
| |
| Authors: | Paresh Kumar Narayan Seema Narayan Vinod Mishra |
| |
| Affiliation: | (1) School of Accounting, Economics and Finance, Faculty of Business and Law, Deakin University, 221 Burwood Highway, Burwood, VIC, 3125, Australia;(2) School of Economics, Finance and Marketing, Royal Melbourne Institute of Technology, Melbourne, Australia;(3) Department of Economics, Faculty of Business and Economics, Monash University, Melbourne, Australia |
| |
| Abstract: | In this paper, we estimate a money demand function for a panel of five South Asian countries. We find that the money demand and its determinants, namely real income, real exchange rate and short-term domestic and foreign interest rates are cointegrated both for individual countries as well as for the panel, and panel long-run elasticities provide robust evidence of statistically significant relationships between money demand and its determinants. Our test for panel Granger causality suggests short-run causality running from all variables, except foreign interest rate, to money demand, and we find evidence that except for Nepal money demand functions are stable. |
| |
| Keywords: | Money demand function Cash-in-advance model Panel cointegration Panel Granger causality |
| 本文献已被 SpringerLink 等数据库收录！ |
|
