Another look at long-run money demand q Laurence Ball ! , " , * !

@inproceedings{Chen2000AnotherLA,
  title={Another look at long-run money demand q Laurence Ball ! , " , * !},
  author={Qiming Chen and Pedro DeLima and Martin Eichenbaum and Laurence Ball},
  year={2000}
}
This paper investigates the long-run demand for M1 in the postwar United States. Previous studies, based on data ending in the late 1980s, are inconclusive about the parameters of postwar money demand. This paper obtains precise estimates of these parameters by extending the data through 1996. The income elasticity of money demand is approximately 0.5, and the interest semi-elasticity is approximately !0.05. These parameters are signi"cantly smaller in absolute value than the corresponding… CONTINUE READING
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