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A Timewise Specification Sensitive Look At Money Demand: An Analysis Of Us Data

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  • ISMAIL GENC

    (School of Business and Management, American University of Sharjah, Sharjah, United Arab Emirates;
    University of Idaho, USA)

Abstract

This paper analyses the money demand relationship with a clear distinction in the functional forms of short- and long-run. It is shown that there is a long-run relationship between money and income, and that money demand declines after a certain level of income is achieved in the short-run. Demand tends to converge to its long-run levels. Credit has a negative but statistically insignificant impact on money demand.

Suggested Citation

  • Ismail Genc, 2007. "A Timewise Specification Sensitive Look At Money Demand: An Analysis Of Us Data," Annals of Financial Economics (AFE), World Scientific Publishing Co. Pte. Ltd., vol. 3(01), pages 1-17.
    • Handle: RePEc:wsi:afexxx:v:03:y:2007:i:01:n:s2010495207500030
    DOI: 10.1142/S2010495207500030
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    References listed on IDEAS

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    Keywords

    Nonlinearity; TAR; money demand; E410; O420; O500; O510;
    All these keywords.

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