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The Concept and Estimation of Direct, Indirect and

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  • Fidelina B. Natividad

    (University of the Philippines)

Abstract

This paper reviews briefly the literature on currency substitution and presents two alternative speci?cations of money demand function which take into account different forms of currency substitution. It demonstrates that the money demand function which separates direct currency substitution from indirect currency substitution is mathematically equivalent to one that combines the two effects.

Suggested Citation

  • Fidelina B. Natividad, 1989. "The Concept and Estimation of Direct, Indirect and," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 26(2), pages 287-301, December.
    • Handle: RePEc:phs:prejrn:v:26:y:1989:i:2:p:287-301
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    File URL: http://pre.econ.upd.edu.ph/index.php/pre/article/download/875/433
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