An Analysis Of The Interest Elasticity Of Financial Asset Holdings By Income

  title={An Analysis Of The Interest Elasticity Of Financial Asset Holdings By Income},
  author={Brian Amick and James McGibany},
A Keynesian money demand model is used to examine the interest elasticity of financial asset holdings by income level. In this model, once an individual receives income, they first make transactions, and any leftover income goes for speculative purposes. Since only speculative balances are assumed to change with interest rates, individuals with income used mainly for transactions purposes are theorized to have asset holdings that are unresponsive to interest rates, while higher income… CONTINUE READING

From This Paper

Figures, tables, and topics from this paper.


Publications referenced by this paper.

The Stability of the Demand for Money and M1 Velocity: Evidence from the Sectoral Data,

  • Butkiewicz, James, McConnell, Mary
  • The Quarterly Review of Economics and Finance,
  • 1995
Highly Influential
5 Excerpts

The Stability of the M2 Demand Function: Evidence from an ErrorCorrection Model,

  • Mehra, P Yash
  • Journal of Money, Credit, and Banking,
  • 1993

How Useful is M2 ToThe Journal of Applied Business Research day?

  • Hetzel, L Robert
  • Federal Reserve Bank of Richmond Economic Review…
  • 1992

Similar Papers

Loading similar papers…