Journal articles: 'Demand for money Econometric models'

1

MILBOURNE, ROSS. "DISTINGUISHING BETWEEN AUSTRALIAN DEMAND FOR MONEY MODELS." Australian Economic Papers 24, no. 44 (June 1985): 154–68. http://dx.doi.org/10.1111/j.1467-8454.1985.tb00102.x.

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Amadhila, Elina, and Sylvanus Ikhide. "Unfulfilled loan demand among agro SMEs in Namibia." South African Journal of Economic and Management Sciences 19, no. 2 (May 13, 2016): 264–81. http://dx.doi.org/10.4102/sajems.v19i2.1398.

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Using a qualitative methodology approach, a case study research design by way of in-depth semi-structured interview(s) was followed to interview farmers, commercial banks, development banks, venture capitals and private equities to determine the financing options available for farmers and provide reasons why some financial institutions shy away from providing finance to agricultural enterprises. This study deviates from prior studies which have focused on small-scale farmers and subjected farmers’ access to finance to rural credit markets, mostly informal money lenders using secondary information mostly from household surveys to build econometric models. The study indicates that only about 33 percent of formal financial institutions are providing finance to agricultural SMEs. The lack of expertise and perception of risk were cited as top reasons why formal financial institutions find it hard to provide finance to agricultural SMEs. Building on opinions from other authors cited in this paper, we maintain that new financing mechanisms can be achieved by all types of financial institutions through learning from experiences by other successful countries.

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Aschheim, Joseph, and George S. Tavlas. "Inconsistency in correcting for serial correlation in money-demand models." Atlantic Economic Journal 15, no. 4 (December 1987): 16–21. http://dx.doi.org/10.1007/bf02304200.

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CUADRAS-MORATÓ, XAVIER, and RANDALL WRIGHT. "MONEY AS A MEDIUM OF EXCHANGE WHEN GOODS VARY BY SUPPLY AND DEMAND." Macroeconomic Dynamics 1, no. 4 (December 1997): 680–700. http://dx.doi.org/10.1017/s1365100597005026.

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Models of the exchange process based on search theory can be used to analyze the features of objects that make them more or less likely to emerge as money in equilibrium. These models illustrate the trade-off between endogenous acceptability (an equilibrium property) and intrinsic characteristics of goods, such as storability or recognizability. We look at how the relative supply and demand for various goods affect their likelihood of becoming money. Intuitively, goods in high demand and/or low supply are more likely to appear as commodity money, subject to the qualification that which object ends up circulating as a medium of exchange depends at least partly on convention. Welfare properties and fiat money are discussed.

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Nielsen, Heino Bohn. "Influential observations in cointegrated VAR models: Danish money demand 1973–2003." Econometrics Journal 11, no. 1 (March 2008): 39–57. http://dx.doi.org/10.1111/j.1368-423x.2007.00226.x.

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Sokic, Alexandre. "The Monetary Analysis of Hyperinflation and the Appropriate Specification of the Demand for Money." German Economic Review 13, no. 2 (May 1, 2012): 142–60. http://dx.doi.org/10.1111/j.1468-0475.2011.00543.x.

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Abstract This paper emerges from the failure of the traditional models of hyperinflation with perfect foresight. Insights from two standard optimizing monetary settings and economic reasoning from case studies of extreme hyperinflation episodes provide relevant requirements for the specification of the demand for money during hyperinflation. The paper demonstrates that the possibility of perfect foresight monetary hyperinflation paths depends robustly on the essentiality of money. The essentiality of money provides some depth of explanation of the reasons why the popular semi-log schedule of the demand for money is not appropriate for analysing monetary hyperinflation with perfect foresight. The paper proposes a simple test of money essentiality for the appropriate specification of the demand-for-money equation in empirical studies of hyperinflation.

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Puah, Chin-Hong, and Lee-Chea Hiew. "FINANCIAL LIBERALIZATION, WEIGHTED MONETARY AGGREGATES AND MONEY DEMAND IN INDONESIA." Labuan Bulletin of International Business and Finance (LBIBF) 8 (January 31, 2011): 76–93. http://dx.doi.org/10.51200/lbibf.v8i.2571.

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This study investigates the significance of Divisia monetary aggregates in formulating the monetary policy in Indonesia. A money demand function has been constructed to compare the relative performance for Simple-sum M1 and M2 (SSM1 and SSM2) and Divisia M1 and M2 (DM1 and DM2) monetary aggregates. The econometrics testing procedures that have been utilized in the estimation include unit root test, cointegration test, Vector Error Correction Model (VECM), Granger causality test and residual test. Empirical findings indicate that only DM1 model yields credible result amongst all of the money demand models. The obtained coefficients for DM1 model are consistent with a prior theoretical expectation and carry plausible magnitudes. The DM1 model is satisfactory as proven by the diagnostic tests. Divisia monetary aggregates are proven not only theoretical superior but also empirical valid as useful measurement of money for the case of Indonesia. The central bank of Indonesia may consider using Divisia monetary aggregates as the policy variables in formulating monetary policy.

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ESCRIBANO, ALVARO. "NONLINEAR ERROR CORRECTION: THE CASE OF MONEY DEMAND IN THE UNITED KINGDOM (1878–2000)." Macroeconomic Dynamics 8, no. 1 (January 30, 2004): 76–116. http://dx.doi.org/10.1017/s1365100503030013.

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This paper explores single-equation nonlinear error correction (NEC) models with linear and nonlinear cointegrated variables. Within the class of semiparametric NEC models, we use smoothing splines. Within the class of parametric models, we discuss the interesting properties of cubic polynomial NEC models and we show how they can be used to identify unknown threshold points in asymmetric models and to check the stability properties of the long-run equilibrium. A new class of rational polynomial NEC models is also introduced. We found multiple long-run money demand equilibria. The stability observed in the money-demand parameter estimates during more than a century, 1878 to 2000, is remarkable.

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Bohn, Henning. "On Cash-in-Advance Models of Money Demand and Asset Pricing." Journal of Money, Credit and Banking 23, no. 2 (May 1991): 224. http://dx.doi.org/10.2307/1992778.

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Atkinson, Paul, and Adrian Blundell-Wignall. "What Problem Is Post-Crisis QE Trying to Solve?" Journal of Risk and Financial Management 15, no. 2 (January 18, 2022): 40. http://dx.doi.org/10.3390/jrfm15020040.

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What problem the Fed and other central banks are solving by printing money and letting interest rates fall to zero is the focus of this paper. This activity does not appear to affect nominal GDP or inflation prior to COVID, and yet central bank liabilities have continued to rise. This suggests the presence of rising cash demand that has prevented excess cash and inflation pressures from emerging. While there was some hope that quantitative easing would be a new instrument in addition to interest rates as far as monetary policy goals were concerned, this has not proved to be the case. Instead, banking system demand for central bank liabilities keeps rising as an endogenous response to the changed business models of banks forced on them by post-crisis re-regulation and extremely low interest rates. These ideas were tested with cointegration and error correction econometric techniques. Examples of the growing risk of leverage and counterparty risks in this disequilibrium process are provided.

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Thomas, John James. "Algunos desarrollos recientes en la metodología de la econometría aplicada." Lecturas de Economía, no. 19 (March 24, 2011): 209–40. http://dx.doi.org/10.17533/udea.le.n19a8081.

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• Resumen: Debido a diversos factores o prejuicios que afectan el trabajo econométrico de la mayoría de los economistas, usualmente se siguen secuencias ad-hoc para la construcción de modelos. Esto es, se prueba una serie de ecuaciones que comienza con una forma funcional simple a la cual se le introducen o eliminan otras variables con base en criterios exclusivamente estadísticos (significancia, bondad de ajuste, etc.). En los últimos años, algunos autores han considerado que tales procedimientos pueden conducir a conclusiones espurias. Proponen como alternativa iniciar la serie de pruebas con base en un modelo lo más general posible (que incluya o "encajone" las diferentes hipótesis teóricas) y posteriormente investigue qué tanto puede simplificarse dicho modelo, siguiendo procedimientos legítimos. En este artículo se utiliza el caso de la demanda de dinero en el Reino Unido para realizar un ejercicio que muestra las bondades del método propuesto. • Abstract: For a variety of reasons economists tend to construct their econometric models in ad-hoc ways. They start with a simple specification of a series of equations and add or subtract variables on the basis of exclusively statistical criteria. In recent years it has been realized that such an approach can easily produce spurious results. It is now preferred to commence one's analysis with as general a specification of the model as possible which nests possible alternatives. One then can legitimately compare the original specification with the various nested forms. This paper uses the case of the demand for money in the United Kingdom as an example of the method.

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Dritsaki, Melina, and Chaido Dritsaki. "Long-Run Stability of Money Demand and Monetary Policy: The Case of South Korea." Asian Economic and Financial Review 12, no. 5 (April 27, 2022): 296–316. http://dx.doi.org/10.55493/5002.v12i5.4482.

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The current paper aims to investigate the stability of money demand in the case of Korea. Since the economic reforms in Korea faced considerable structural changes, it was difficult to formulate a stable money demand function. The use of unit root and cointegration tests with structural breaks suggest that economic and financial deregulations have influenced the stability of money demand. The cointegration results suggest a cointegration vector in all models, implying a long-run relationship. Furthermore, the estimated long-run equations show that the elasticity of long-run industrial production to real money is positive and very close to one. Finally, the exogeneity test shows a long-run, one-way, causal relationship from industrial production to M1 and a bi-directional causality between M1 and interest rate in both models. In the case of M3, there are long-run, one-way, causal relationships from industrial production and interest rate to M3 in both models.

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Chang, Dongfeng, and Apostolos Serletis. "THE DEMAND FOR LIQUID ASSETS: EVIDENCE FROM THE MINFLEX LAURENT DEMAND SYSTEM WITH CONDITIONALLY HETEROSKEDASTIC ERRORS." Macroeconomic Dynamics 23, no. 07 (March 16, 2018): 2941–58. http://dx.doi.org/10.1017/s1365100517001006.

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We investigate the demand for money and the degree of substitutability among monetary assets in the United States using the generalized Leontief and the Minflex Laurent (ML) models as suggested by Serletis and Shahmoradi (2007). In doing so, we merge the demand systems literature with the recent financial econometrics literature, relaxing the homoskedasticity assumption and instead assuming that the covariance matrix of the errors of flexible demand systems is time-varying. We also pay explicit attention to theoretical regularity, treating the curvature property as a maintained hypothesis. Our findings indicate that only the curvature constrained ML model with a Baba, Engle, Kraft, and Kroner (BEKK) specification for the conditional covariance matrix is able to generate inference consistent with theoretical regularity.

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Franses, Philip Hans, and Timo Teräsvirta. "INTRODUCTION TO THE SPECIAL ISSUE: NONLINEAR MODELING OF MULTIVARIATE MACROECONOMIC RELATIONS." Macroeconomic Dynamics 5, no. 4 (September 2001): 461–65. http://dx.doi.org/10.1017/s136510050102301x.

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During the past decade, the popularity of nonlinear models in econometrics has been increasing quite rapidly. Nonlinear models are now widely used for modeling macroeconomic relationships, and they also are used frequently in financial econometrics. The most popular nonlinear models have been univariate. Threshold autoregressive, Markov switching autoregressive, and smooth-transition autoregressive models, just to name a few popular families of models, have been widely applied to modeling of macroeconomic series. Even nonlinear multivariate single-equation models have found application in areas where linear single-equation models traditionally have been used, such as modeling the demand for money, real exchange rates, consumption–income relationship, and house prices. Interest in nonlinearities in the Phillips curve also has grown recently.

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15

Davidson, James, and Jonathan Ireland. "Buffer Stock Models of the Monetary Sector." National Institute Economic Review 121 (August 1987): 67–71. http://dx.doi.org/10.1177/002795018712100109.

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Modelling the monetary sector has long been seen as problematic. Conventional demand for money functions have typically failed to cope with the experience of the past 15 years (Judd and Scadding, 1982) and models based upon the counterparts to monetary growth have fared little better. The current interest in buffer stock money (see Cuthbertson and Taylor, 1987, for a recent survey) can be seen as a response to the failure of the more traditional approaches. We believe that the issues involved in the empirical implementation of the buffer stock hypothesis are subtle and that the literature to date has not dealt with them satisfactorily. In spite of the substantial difficulties involved, we think that a system approach to buffer stock modelling (for example, Davidson, 1987a) may be unavoidable to ensure theoretical consistency.

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16

Hall, S. G., and R. Herbert. "Consistent Simulations and the National Institute Model 8." National Institute Economic Review 115 (February 1986): 64–73. http://dx.doi.org/10.1177/002795018611500107.

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This paper will present a set of simulation exercises, and discuss some of the methodological issues arising from the new National Institute Model 8. This model has been developed from earlier models used at the National Institute and has much in common with those models. In particular, it adheres to a traditional income-expenditure framework and is, in broad outline, a Keynesian model. The new feature of Model 8 which distinguishes it from its predecessors is the explicit widespread treatment of expectations. Recognition of the importance of expectations in macroeconomics is widely disseminated and much attention has been given recently in the econometric literature to the modelling of expectations. Model 8 now includes explicit expectations terms in the following sectors: employment, stockbuilding, investment, wage formation, the exchange rate and the demand for money. The details of individual equation estimation and specification may be found in Hall and Henry (1985a) and will not be given here. In the estimation process much use has been made of the rational expectations hypothesis, while in the full model implementation expectations may be formed either consistently or on the basis of explicit expectations models.

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17

Naudè, W. A. "Do Error Correction Models Contribute Towards Understanding Money Demand in South Africa? A Note." Studies in Economics and Econometrics 16, no. 3 (November 30, 1992): 51–62. http://dx.doi.org/10.1080/03796205.1992.12129029.

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18

ziramba, emmanuel. "DEMAND FOR MONEY AND EXPENDITURE COMPONENTS IN SOUTH AFRICA: ASSESSMENT FROM UNRESTRICTED ERROR-CORRECTION MODELS." South African Journal of Economics 75, no. 3 (September 2007): 412–24. http://dx.doi.org/10.1111/j.1813-6982.2007.00133.x.

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19

Cysne, Rubens Penha, and David Turchick. "On the integrability of money-demand functions by the Sidrauski and the shopping-time models." Journal of Banking & Finance 33, no. 9 (September 2009): 1555–62. http://dx.doi.org/10.1016/j.jbankfin.2009.01.010.

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20

ARIZE, A. C., and JOHN MALINDRETOS. "DOES INFLATION VARIABILITY AFFECT THE DEMAND FOR MONEY IN CHINA? EVIDENCE FROM ERROR-CORRECTION MODELS." International Economic Journal 14, no. 1 (April 1, 2000): 47–60. http://dx.doi.org/10.1080/10168730000080003.

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Valencia Romero, Ramón, Jorge Andrés González Moya, and Humberto Ríos Bolívar. "DEMANDA DE DINERO Y CAPTACIÓN BANCARIA EN MÉXICO." Investigación Económica 79, no. 314 (September 21, 2020): 75. http://dx.doi.org/10.22201/fe.01851667p.2020.314.76617.

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Considerando las variables de actividad económica y de costo de oportunidad de mantener dinero que inciden en la demanda de dinero (M1), analizamos su efecto en la captación del sistema bancario mexicano (2006-2018). Por primera vez se introduce a M1 como determinante de la captación. El análisis emplea un modelo de vectores autorregresivos (VAR, Vector Autoregression) para evaluar la cointegración, así como modelos de corrección de errores. Concluimos que la captación bancaria no fue determinada por la variable actividad económica (el IGAE), sino por algunas variables de costo de oportunidad; sobresale el papel de M1 como determinante de la captación. Por último, obtuvimos un comportamiento estable de la captación. La estabilidad la analizamos con un modelo de cambio de régimen, e identificamos dos regímenes, alta y baja volatilidad; predomina este último. MONEY DEMAND AND BANK DEPOSITS IN MEXICOABSTRACTConsidering that the variables economic activity and opportunity cost of holding money affect money demand (M1), their effect on deposits at the Mexican banking system is analyzed for the period 2006-2018. For the first time ever, M1 is introduced as a determinant of bank deposits. A Vector Autoregressive Model is used to assess cointegration. Error Correction Models were used. We concluded that bank deposits were not determined by the variable economic activity (IGAE), the rate of inflation nor the bank funding rate, but by some opportunity cost variables. The role of M1 stands out as a determinant of bank deposits. Finally, a stable behavior of bank deposits is obtained. Stability is analyzed using a Regime Switching-Model, two regimes are identified, high and low volatility, the latter predominates.

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Ramajo, Julian. "Time-varying parameter error correction models: the demand for money in Venezuela, 1983.I-1994.IV." Applied Economics 33, no. 6 (May 2001): 771–82. http://dx.doi.org/10.1080/00036840122141.

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23

Wallace, Neil. "Comments on “Buffer stock models of the demand for money and the conduct of monetary policy”." Journal of Policy Modeling 12, no. 2 (June 1990): 347–48. http://dx.doi.org/10.1016/0161-8938(90)90036-e.

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Choudhry, Taufiq. "Long-run money demand function in Argentina during 1935–1962: evidence from cointegration and error correction models." Applied Economics 27, no. 8 (August 1, 1995): 661–67. http://dx.doi.org/10.1080/00036849500000056.

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Calza, Alessandro, and Andrea Zaghini. "NONLINEARITIES IN THE DYNAMICS OF THE EURO AREA DEMAND FOR M1." Macroeconomic Dynamics 13, no. 1 (February 2009): 1–19. http://dx.doi.org/10.1017/s1365100508070405.

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This paper finds evidence of nonlinearities in the dynamics of the euro area demand for the narrow aggregate M1. A long-run money demand relationship is first estimated over a sample period covering the past three decades. Although the parameters of the relationship are jointly stable, there are indications of nonlinearity in the residuals of the error-correction model. This nonlinearity is explicitly modeled using a fairly general Markov switching error-correction model with satisfactory results. The empirical findings of the paper are consistent with theoretical predictions of nonlinearities in the dynamics of adjustment to equilibrium stemming from “buffer stock” and “target-threshold” models and with analogous empirical evidence for European countries and the United States.

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Ostapenko, V. M., and E. A. Buglevsky. "Money supply in the history of macroeconomic thought: 50 shades of endogeneity." Journal of the New Economic Association 55, no. 3 (2022): 156–76. http://dx.doi.org/10.31737/2221-2264-2022-55-3-8.

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The paper considers the evolution of the money supply concept in economics through the lens of contemporary discussion on the degree of its endogeneity. It is stated that the model of exogenous money supply formation, widespread in the literature and actively criticized in recent decades, is an artifact of macroeconomic thought. Its dominance lasted a very short time period, and various forms of endogeneity were attributed to money supply much more often in the course of monetary theory development. Authors cover the debates between the currency and banking school in the XIX century, the birth of the theory of money multiplier, Keynes’ position, the monetarist view of money supply and its criticism by Post- Keynesians. Particular attention is paid to the turn in views within the mainstream, from the Real Business Cycles doctrine to state-of-the-art models of the New Synthesis. It is emphasized that the complete exogeneity of money supply is a distinctive feature only of the monetarist approach, which has relied on the specifi c assumption of the stability of money demand function. The paper shows that, despite the visible convergence between the New Keynesian and Post- Keynesian positions, based on the modeling of interest rate targeting rather than money supply targeting by the central bank, fundamental differences still remain between two camps regarding the endogeneity mechanism.

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Hasan, Umair, Andrew Whyte, and Hamad Al Jassmi. "Life-cycle Asset Management in Residential Developments Building on Transport System Critical Attributes via a Data-mining Algorithm." Buildings 9, no. 1 (December 20, 2018): 1. http://dx.doi.org/10.3390/buildings9010001.

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Public transport can discourage individual car usage as a life-cycle asset management strategy towards carbon neutrality. An effective public transport system contributes greatly to the wider goal of a sustainable built environment, provided the critical transit system attributes are measured and addressed to (continue to) improve commuter uptake of public systems by residents living and working in local communities. Travel data from intra-city travellers can advise discrete policy recommendations based on a residential area or development’s public transport demand. Commuter segments related to travelling frequency, satisfaction from service level, and its value for money are evaluated to extract econometric models/association rules. A data mining algorithm with minimum confidence, support, interest, syntactic constraints and meaningfulness measure as inputs is designed to exploit a large set of 31 variables collected for 1,520 respondents, generating 72 models. This methodology presents an alternative to multivariate analyses to find correlations in bigger databases of categorical variables. Results here augment literature by highlighting traveller perceptions related to frequency of buses, journey time, and capacity, as a net positive effect of frequent buses operating on rapid transit routes. Policymakers can address public transport uptake through service frequency variation during peak-hours with resultant reduced car dependence apt to reduce induced life-cycle environmental burdens of buildings by altering residents’ mode choices, and a potential design change of buildings towards a public transit-based, compact, and shared space urban built environment.

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Ericsson, Neil R., David F. Hendry, and Kevin M. Prestwich. "Friedman and Schwartz (1982) revisited: Assessing annual and phase-average models of money demand in the United Kingdom." Empirical Economics 23, no. 3 (August 1, 1998): 401–15. http://dx.doi.org/10.1007/s001810050028.

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Ericsson, Neil R., David F. Hendry, and Kevin M. Prestwich. "Friedman and Schwartz (1982) revisited: Assessing annual and phase-average models of money demand in the United Kingdom." Empirical Economics 23, no. 3 (September 1998): 401–15. http://dx.doi.org/10.1007/bf01294415.

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Arestis, Philip, and Ana González. "The housing market-bank credit relationship: Some thoughts on its causality." Panoeconomicus 61, no. 2 (2014): 145–60. http://dx.doi.org/10.2298/pan1402145a.

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The dominance of the orthodox paradigm over the last decades prior to the ?great recession? left no room for the notion of ?endogenous money? in the development of economic theory. However, this alternative direction of the causality of demand for money-credit and economic activity has been present in the heterodox economic thought since the 1930s and should be reconsidered in the current situation. In this context, the numerous episodes of housing bubbles, which have been taking place since 2007, create the perfect ?environment? to explore the notion of ?dynamic monetized production economy?. Our theoretical framework is estimated econometrically by using a sample of 6 developed economies which spans from 1970 to 2011. The non-stationary ?nature? of our data recommends the use of cointegration techniques (S?ren Johansen 1995) in order to estimate our models.

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Md Saad, Norma, and Jarita Duasa. "Determinants of Economic Performance of Micro-Credit Clients and Prospects for Islamic Microfinance in Malaysia." ISRA International Journal of Islamic Finance 2, no. 1 (June 15, 2010): 111–28. http://dx.doi.org/10.55188/ijif.v2i1.94.

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This study is divided into two parts. The first part of the study utilises econometric models to assess the economic performance of clients participating in the microcredit programme of Amanah Ikhtiar Malaysia (AIM). Several proxies are used for the economic performance variable (dependent variable), including level of earnings/income, ratio of spending to income and value of assets. The regressors (independent variables) used are education level, age, amount of loan, source of income and ownership of assets. The second part of this study concentrates on analysing the prospects of introducing Islamic microfinance products to be used in microfinance activities in Malaysia. In the first part of the study, we find that the economic performance of AIM participants is significantly determined by the amount of money borrowed from AIM. Other factors found to influence the respondents’ economic performance are education level, age, gender, assets owned before joining AIM and area of residence. Because level of education is found to contribute significantly to the economic performance of AIM participants, it is suggested that AIM work to educate its borrowers, and more specifically, to provide business training. In the second part of the study, the results show that there is a great demand for Islamic microfinance products in Malaysia. The findings of the study could serve as general guidelines for microfinance institutions in designing Islamic microfinance products for either Muslims or non-Muslim micro-entrepreneurs.

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CHIU, HUAN NENG, and HSIN MIN CHEN. "THE EFFECT OF TIME-VALUE OF MONEY ON DISCRETE TIME-VARYING DEMAND LOT-SIZING MODELS WITH LEARNING AND FORGETTING CONSIDERATIONS." Engineering Economist 42, no. 3 (January 1997): 203–21. http://dx.doi.org/10.1080/00137919708903179.

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Boháčik, Ján. "Financial shocks and their effects on velocity of money in agent-based model." Review of Economic Perspectives 22, no. 4 (December 1, 2022): 241–66. http://dx.doi.org/10.2478/revecp-2022-0011.

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Abstract The interaction of debt and economic performance has been getting more attention over the last few years. However, models making provision for debt are still outnumbered by models completely ignoring it. This paper is the first one to analyze the relationship between household debt (in the form of bank loans) and economic performance (in terms of aggregate income) considering both the impact of wealth and income distribution, and the impact of the MPC distribution under various financial shocks. The outcomes of the model are velocities calculated as ratios of aggregate income to aggregate debt. The paper demonstrates how financial shocks affect the income velocity of money under different distributions of wealth/income and marginal propensity to consume across the population. For this purpose, an original agent-based simulation model with a limited loan supply was designed. Proposed model shocks are shocks to loan demand, loan supply, marginal propensity to consume, macro-prudential regulatory ratios, real estate capital gains, repayment ratios, shocks to the structure of loans provided and to the structure of real estate property transactions. It is shown that the more equal the distributions of wealth/income and of the marginal propensity to consume, the higher is the income velocity of money. From financial shocks, the marginal propensity to consume shock and the shock to the structure of new real estate property purchases have the largest impact on velocity. The shock to regulatory ratios has generally the lowest magnitude.

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Dorfleitner, Gregor, and Sebastian Utz. "Profiling German-speaking socially responsible investors." Qualitative Research in Financial Markets 6, no. 2 (July 29, 2014): 118–56. http://dx.doi.org/10.1108/qrfm-07-2012-0024.

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Purpose – The purpose of this paper is to analyze the main motives of investors in allocating their money in a socially responsible (SR) way. Design/methodology/approach – The paper is based on primary data collected in a survey using an online questionnaire. This paper applies tests for continuous and categorical data and (ordered) logit models. Findings – In a multivariate analysis that investigates determinants of SR investing, this study finds little influence of the demographic factors of gender and investment volume and none of educational level. Furthermore, it shows that the regions investors allocate their money to are significant along with the preference toward the order of return, risk and liquidity. Moreover, there appears to be a gap between supply and demand of SR investments. Additionally, there are indications that a very important inducement for SR investing is the expectation of a high financial performance. Originality/value – There are very few international studies concerning the link between SR investments and the explanation of preferences with factors other than demographic ones. This study broadens the scope of the literature by providing novel empirical evidence for the German-speaking market.

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Eroglu, Abdullah, and Gultekin Ozdemir. "A NOTE ON “THE EFFECT OF TIME-VALUE OF MONEY ON DISCRETE TIME-VARYING DEMAND LOT-SIZING MODELS WITH LEARNING AND FORGETTING CONSIDERATIONS”." Engineering Economist 50, no. 1 (March 23, 2005): 87–90. http://dx.doi.org/10.1080/00137910590916702.

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Barrell, Ray, Simon Kirby, and E. Philip Davis. "Modelling the UK Banking Sector." National Institute Economic Review 214 (October 2010): F67—F72. http://dx.doi.org/10.1177/0027950110389773.

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The financial crisis that emerged during 2007 and overwhelmed the financial system in late 2008 also brought to the fore some of the obvious failings of the style of modelling that had been fashionable in central banks in the previous decade. The shift to Dynamic Stochastic General Equilibrium models (DSGE) of whatever sort left no real scope for money and financial markets to have an impact on the real economy. This was in part because equilibrium models based on theory are unlikely to be designed to cope with a period of disequilibrium, which is when the financial system becomes important in macroeconomics. DSGE models come in various guises, and it was common to operate with a three-equation model with demand, supply and the interest rate as the equations. It is hard to see how the financial sector could fit into this, or what use it would be even if it were included. Larger DSGE models that respect the national income identity are easier to augment with a financial sector; but even that developed by the US Federal Reserve (see Edge, Kiley and Laforte, 2010) tends to return to equilibrium rather more rapidly than seems reasonable.

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Gebremariam, Aregawi Gebremedhin. "Hello, I am calling to ask for some money: mobile phones and credit uptake in rural Ethiopia." African Journal of Economic and Management Studies 11, no. 3 (April 15, 2020): 457–80. http://dx.doi.org/10.1108/ajems-03-2019-0109.

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PurposeIt is widely believed that ICT has a significant influence on the daily life of the poor and has positive spillover effects in their livelihoods. Mobile phones are one of the few ICT innovations that have found their way into the hands of the poor residing in remote and rural areas. In Ethiopia, mobile phones are recently introduced but got an acceptance from everyone including the rural poor; in five years’ time, mobile phones subscription has increased from less than 4% to more than 40%. Empirical evidence generally documents the positive role mobile phones play in facilitating the development efforts of poor households. However, using panel data from Ethiopia, the current paper explores a less investigated issue of the possible effects of mobile phone adoption on the credit uptakes of the rural poor who are mostly neglected from the formal credit markets but finance their credit demand from informal sources including relatives/friends.Design/methodology/approachTo investigate the relationship between mobile phones and credit uptake and/or loan size, one can use different empirical strategies. For partly unleashing the endogeneity problem, an instrumental variable estimation approach is adopted in this paper. To deal with the endogeneity problem, one may consider using the linear IV approach or the control function. But the outcome variable and the endogenous variable are binary in nature, and the usual trend is to use the linear IV models or control functions, which do not consider these binary natures of the variables. To this end, a special regressors estimator is adopted, mostly used when both the dependent and the endogenous variables are binary in nature.FindingsThe econometric results suggest mobile phones are positively associated with the credit uptake of rural households, especially credit uptake from informal sources. Households with mobile phones are found to have 4%–14% higher probabilities of credit uptake and about 6%–17% in the case of credit from informal sources. Besides, households with mobile phones are found to have about ETB 65 (USD 3.42) higher loan size and about ETB 78 (USD 4.11) higher amount of loan in the case of a loan from the informal sources. Thus, policy-makers and financial providers working on providing credit in rural areas need to exploit the use of mobile phones in reaching out to the rural poor.Originality/valueThe author attests the fact that the work described has not been published previously and that it is not under consideration for publication elsewhere. Besides, it is the original work of the author.

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Laidler, David. "Financial Stability, Monetarism and the Wicksell Connection." Review of Economic Analysis 1, no. 1 (November 22, 2009): 60–79. http://dx.doi.org/10.15353/rea.v1i1.1479.

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In today's discussions of central banking, maintaining macro-financial stability has only recently appeared along-side the pursuit of low inflation as an important policy goal. This is in strong contrast to the earlier literature, where financial stability was often the main concern of the theory of central banking. This theme is explored here first from the point of view of the monetarist tradition, which treated an excess demand for money which the central bank in its capacity as lender of last resort had an obligation to relieve as a central feature of financial crises; and then from that of a later Wicksellian tradition, where co-ordination failures in the inter-temporal allocation of resources that it was monetary policy's task to avoid, were emphasized. Though there are no long-lost sure cures for financial instability awaiting discovery in the older literature, its emphasis on the potential for markets to fail to clear provides a helpful perspective on the phenomenon, often missing from modern models of the conduct of monetary policy.

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Grigoryev, L. M., Z. S. Elkina, P. A. Mednikova, D. A. Serova, M. F. Starodubtseva, and E. S. Filippova. "The perfect storm of personal consumption." Voprosy Ekonomiki, no. 10 (October 11, 2021): 27–50. http://dx.doi.org/10.32609/0042-8736-2021-10-27-50.

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The COVID-19 pandemic forced the governments of almost all countries to introduce lockdowns in 2020, which sharply reduced the supply in a number of large service sectors: transport, recreation, catering, tourism. The recession began without a crisis, and the unique supply of cheap money and fiscal incentives prevented the development of a “liquidity crunch”. On the contrary, it led to an increase in stock prices, real estate prices, and a reduction in bankruptcies. There was no drop in the value of pension and investment funds. The working population has faced a reduction in employment in labor-intensive service industries, a violation of traditional lifestyle models. The course of the recession in these conditions has changed the structure of personal consumption in developed countries, with its severe adaptation in medium-developed and less developed countries. The pandemic and the recession have caused an uneven compression of activity and consumption across social strata that leads to an increase in social disparities on exiting the recession. The drivers of the demand-side recovery in developed countries are the growth of investments in housing and durable goods, and developing countries are gradually restoring normal consumption of non-durable goods and exports.

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Arize, A. C. "An Econometric Analysis of Money Demand in Taiwan, 1950–1989." American Economist 38, no. 1 (March 1994): 27–35. http://dx.doi.org/10.1177/056943459403800104.

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This paper is an empirical study of the demand for money in Taiwan, a small open economy. Alternative hypotheses of the short-term adjustment process are tested, and the results support the error-correction adjustment process. The results further suggest, based on a battery of tests, that the estimated error-correction money demand equation is temporally stable. Focus is also given to the open-economy nature of the money demand model, and the results indicate that some measure of foreign interest rates plays a significant role in Taiwan money demand behavior. Monetary policy in Taiwan, therefore, must take into account the response of domestic money demand to changes in such factors.

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Dutkowsky, Donald H., and H. Sonmez Atesoglu. "The Demand For Money: A Structural Econometric Investigation." Southern Economic Journal 68, no. 1 (July 2001): 92–106. http://dx.doi.org/10.1002/j.2325-8012.2001.tb00399.x.

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Dutkowsky, Donald H., and H. Sonmez Atesoglu. "The Demand for Money: A Structural Econometric Investigation." Southern Economic Journal 68, no. 1 (July 2001): 92. http://dx.doi.org/10.2307/1061513.

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Qayyum, Abdul. "Demand for Real Money Balances by the Business Sector: An Econometric Investigation." Pakistan Development Review 39, no. 4II (December 1, 2000): 857–73. http://dx.doi.org/10.30541/v39i4iipp.857-873.

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Monetary economics provides one of the important tools, that is monetary policy, to deal with the macroeconomic problems of the economy. It is concerned with the supply of money and the demand for money. It is often assumed that the money supply is exogenously determined by the authorities and the demand for real money is determined by the market. The demand for money is of crucial importance in the conduct of monetary policy. It helps to understand macroeconomic activities and to prescribe appropriate policy instruments to deal with macroeconomic problems. The effectiveness of the monetary policy, however, depends on the shape and stability of the estimated demand for money function.

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Nakashima, Kiyotaka. "AN EXTREMELY-LOW-INTEREST-RATE POLICY AND THE SHAPE OF THE JAPANESE MONEY DEMAND FUNCTION." Macroeconomic Dynamics 13, no. 5 (October 8, 2009): 553–79. http://dx.doi.org/10.1017/s1365100509080225.

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This paper explores the shape of the Japanese money demand function in relation to the historical path of the Bank of Japan's policy rate by employing Saikkonen and Choi's [Econometric Theory 20, 301–340 (2004)] cointegrating smooth transition model. The nonlinear model provides a unified econometric framework, not only for pursuing the time profile of interest elasticity, but also to test the linearity of the Japanese money demand function. The test results for the linearity of the Japanese money demand function provide evidence of nonlinearity with a semilog model and linearity with a double-log model. Using a nonlinear semilog model, the analysis also finds that Japanese money demand comprises three regimes and that the interest semielasticity began to increase in the early 1990s when the Bank of Japan set the policy rate below 3%.

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Bojovic, Viktorija. "Public private partnership as a last resort for traditional public procurement." Panoeconomicus 53, no. 3 (2006): 299–311. http://dx.doi.org/10.2298/pan0603299b.

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This paper discusses recent changes in the way public services are delivered A marked increase in the cooperation between the public and private sector in the realization of complex projects, mostly concerning development of infrastructure, is the main characteristic of present-day developing economies. The creation of new, innovative agreements is driven by the limitation of public funds and an ever-growing demand for an increase in the quality of public services. Looking upon the western economies experience alternatives to the traditional public sector procurement are identified in the public/private partnership. The public/private partnership can be seen as one component in the rearrangement of the public sector with a management culture that focuses on the citizen or customer. Also included in this are accountability for results, investigation of a wide variety of alternative service delivery mechanisms, and competition between public and private bodies for contracts to deliver services consistent with cost recovery and the achievement of value for money. The partnership can be realized through an array of models and in this paper priority is given to the DBFO (design-build-finance-operate) model, due to its importance in implementation. The DBFO model is considered to be a synonym for the public/private partnership, as it is the most suitable for complex projects and gains the most benefits.

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Cheng, Yu, Xu Chen, Xiaohua Ding, and Linting Zeng. "Optimizing Location of Car-Sharing Stations Based on Potential Travel Demand and Present Operation Characteristics: The Case of Chengdu." Journal of Advanced Transportation 2019 (January 20, 2019): 1–13. http://dx.doi.org/10.1155/2019/7546303.

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Car-sharing is becoming an increasingly popular travel mode in China and many companies invest plenty of money on that including vehicle enterprises and Internet companies. But most of them build car-sharing stations by their experience or randomly as long as there is parking space in the early development of their business. This results in many stations with low operational efficiency and causes capital loss. This study aims to use different data source with statistical models and machine learning algorithm to help car-sharing operator to choose the optimal location of new stations and adjust the location of existing stations. We select Chengdu where there are huge amounts of car-sharing travel demand and several large car-sharing operators as the research area and two main operators as the research objects. Chengdu is divided into 58724 squared grids each of which is 0.5km⁎0.5km instead of focusing on the buffers generated by stations. We try to find a model to estimate a potential travel demand value for each small grid with three data sources: order data, population data, and Point of Interest (POI) data. This problem is transformed into a binary form and five different methods, Logistic Regression, Logistic Regression with LASSO, Naive Bayes, Linear Discriminant Analysis, and Quadratic Discriminant Analysis, are implemented. The optimal model, Logistic Regression with LASSO, is chosen to estimate the probability of existence of demand in all grids. With car-sharing order data from different operators, an existing order heat value is also computed for each grid. Then we analyze and classify all the grids into four groups. For different groups of grids, we give different suggestions on the optimal location of stations. This study focuses on a more competitive market and finds the influential factors on order number. Suggestions on the optimal location of stations are given in consideration of competitors. We hope that our research can help operators improve their business and make rational plans.

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Kochergin, D. "Central Banks Digital Currencies: World Experience." World Economy and International Relations 65, no. 5 (2021): 68–77. http://dx.doi.org/10.20542/0131-2227-2021-65-5-68-77.

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Received 28.07.2020. The article examines issues related to the introduction of central bank digital currencies (CBDC) for retail payments and wholesale settlements. The study defines and classifies central bank digital currencies, researches the main models of CBDC systems. The article also analyzes the features of various national projects for issuing Central bank digital currencies. The paper uses methods of economic-statistical and functional-structural analysis. The study concludes that CBDC are a new form of central bank money. Digital currencies can be issued in various issuing systems for the purpose of retail payments or wholesale settlements. Among the models of CBDC systems for retail payments (R-CBDC) the direct system model is the most attractive for its simplicity. This model eliminates the dependence of the Central bank on any financial and payment intermediaries. Models of synthetic and hybrid R-CBDC systems are characterized by reliability and speed in processing multiple transactions which makes them the most promising for implementation. Among the models of CBDC systems for wholesale payments (W-CBDC) the model of the system with a universal digital currency (U-W-CBDC) may be the most suitable for eliminating the main disadvantages of modern cross-border payment systems. However, a large number of technological and financial changes as well as the high operating costs of the U-W-CBDC can make such systems difficult to implement for non-developed financial market infrastructure countries. National financial regulators have different motivations for issuing digital currencies. The main advantages of digital currencies for retail payments may consist in providing users with highly liquid, low-risk, universally available means of payment. The main advantages of wholesale digital currencies are that they offer faster, safer, cheaper cross-border payments. The most advanced projects for issuing R-CBDC can be considered DCEP (People’s Bank of China) E-krona (Central Bank of Sweden). The most successful pilot projects for issuing W-CBDC are the projects Jasper (Central Bank of Canada) and Ubin (Monetary Authority of Singapore), which were able to achieve interoperability in conducting cross-border payments. Currently most CBDC are retail based on the use of distributed ledger technology and implemented in the form of DLT-tokens. Countries that develop digital currency systems can be divided into three groups. The first group is countries where the introduction of CBDC can be designed to support the national demand for central bank money (Sweden, Norway, Singapore, etc.). The second group – countries for which the adoption of digital currencies can afford to keep the place of national currencies in international settlements (USA and EU) or expanding the use of national currencies at the international level (China). The third group represents countries for which the introduction of digital currencies may be associated with the control of national monetary circulation and de-dollarization of the financial system (Uruguay, South Africa, Cambodia, etc.).

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Umar Bala, Chin Lee, and Rabiu Maijama’a. "Asymmetric Pass-Through Effects of Oil Price on Economic Growth in Malaysia." International Journal of Business and Society 22, no. 2 (August 12, 2021): 753–64. http://dx.doi.org/10.33736/ijbs.3755.2021.

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This empirical analysis intends to examine the asymmetric response of economic growth when the oil price changes in Malaysia by applying threshold autoregressive (TAR) and momentum threshold autoregressive (MTAR) cointegration and asymmetric adjustment models. The results revealed that the oil price has an asymmetric impact on Malaysian economic growth. We found that when oil price increases this accelerates economic growth; however, the speeds of adjustment back to the steady position were insignificant. When the oil price dropped, oil price significantly and negatively affects economic growth for a period of time and then returns back to its normal position. The results revealed that Malaysian economic growth constantly benefits when the oil price increases and is temporarily negatively affected when oil prices drop. The results have important policy implications. This suggests that it is essential to the policy makers to consider different policy responses for hikes and drops in oil prices. The result implies that negative oil price shock would lower economic growth, however it is temporary. Therefore, policy makers might response by implementing expansionary monetary policy to stimulate economic growth. The explanation is intuitive. For example, an increase in the money supply would normally pull down the interest rate which would further encourage consumption and investment, stimulate economic growth, which would increase oil demand and push up its price.

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Artsruni, R. A. "Stability of the demand for money in Russia in 2001–2019." Finance and Credit 26, no. 10 (October 29, 2020): 2328–45. http://dx.doi.org/10.24891/fc.26.10.2328.

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Subject. This article investigates the stability of the money demand in Russia over the 2001Q1 to 2019Q4 period. Objectives. Using econometric tools, the article estimates the long-and short-term relationships between monetary aggregates and their determinants. Methods. For the study, I used the Johansen cointegration test, Vector Error Correction Model (VECM), and the Wald test. Results. The article presents the results of an analysis of the relationships between money demand for M1 and M2 money supply. Conclusions. Understanding the demand for money can be useful if the central bank uses an unconventional monetary policy to regulate zero interest rate. The money demand function may tell how much it is necessary to deflate to raise the interest rate above zero.

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Witt, Stephen F., and Christine A. Martin. "Econometric Models for Forecasting International Tourism Demand." Journal of Travel Research 25, no. 3 (January 1987): 23–30. http://dx.doi.org/10.1177/004728758702500306.

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Journal articles on the topic 'Demand for money Econometric models'

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