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Multiple and Pairwise Non-nested Tests of the Influence of Taxes on Money Demand

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  • Smith, Marlene A
  • Smyth, David J

Abstract

The minimal computational requirements of the linear embedding techniques initiated by Davidson and MacKinnon (1981) accomodate multiple and binary tests of autoregressive, non-nested regression models with different dependent variables. The small sample adjustments of Fisher and McAleer (1981) effectively reduce the size of the P-tests for our models. Our application to transactions demand for money models supports the Holmes and Smyth (1972) hypothesis that pre-tax variables are preferred to GNP in M1 money equations. Copyright 1991 by John Wiley & Sons, Ltd.

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  • Smith, Marlene A & Smyth, David J, 1991. "Multiple and Pairwise Non-nested Tests of the Influence of Taxes on Money Demand," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 6(1), pages 17-30, Jan.-Marc.
    • Handle: RePEc:jae:japmet:v:6:y:1991:i:1:p:17-30
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    Cited by:

    1. Marvasti, A. & Smyth, David J., 1999. "The effect of barter on the demand for money: an empirical analysis," Economics Letters, Elsevier, vol. 64(1), pages 73-80, July.
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    3. Wen-Ya Chang & Ching-Chong Lai & Juin-Jen Chang, 1999. "Imperfect Competition and Tax Evasion," Public Finance Review, , vol. 27(3), pages 371-381, May.
    4. Berg, Nathan, 2004. "No-decision classification: an alternative to testing for statistical significance," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 33(5), pages 631-650, November.

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