The Demand for M1 in the United States : A Commenton Baba, Hendry, and Starr /

A recent paper by Baba, Hendry, and Starr presents an error-correction model of the demand for M1 in the United States, which shows a dramatic improvement in both fit and stability over earlier models. This note estimates an alternative model with the same data set and draws two conclusions: that th...

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Bibliografische gegevens
Hoofdauteur: Boughton, James
Formaat: Tijdschrift
Taal:English
Gepubliceerd in: Washington, D.C. : International Monetary Fund, 1993.
Reeks:IMF Working Papers; Working Paper ; No. 1993/024
Onderwerpen:
Online toegang:Full text available on IMF
Omschrijving
Samenvatting:A recent paper by Baba, Hendry, and Starr presents an error-correction model of the demand for M1 in the United States, which shows a dramatic improvement in both fit and stability over earlier models. This note estimates an alternative model with the same data set and draws two conclusions: that the improvements are due more to the use of complex dynamics than to the introduction of variables representing financial innovation, and that some of the economic properties are not robust with respect to minor changes in specification.
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Fysieke beschrijving:1 online resource (10 pages)
Formaat:Mode of access: Internet
ISSN:1018-5941
Toegang:Electronic access restricted to authorized BRAC University faculty, staff and students