Modelling opportunity cost effects in money demand due to openness

Modelling the demand for money in New Zealand

The paper reports on the results of estimating both the longand short-run demand for money function in New Zealand, 1990–2000 using quarterly data and cointegrationand error-correction-based models. It is found that price, real income and interest rate variables are integrated of order 1 or I(1). Using Phillips and Hansen [Rev. Econ. Stud. 57 (1990) 99] fully modified estimation methods, we est...

China's Increasing Openness: Threat or Opportunity? China's Increasing Openness: a Threat or Opportunity?

The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Directors or the governments they represent.

Money demand in Euroland

This paper explores the determinants of alternative monetary aggregates in Euroland. A sample consisting of quarterly data covering the 1980:1–1998:4 period is considered. We are interested whether a conventionally defined money demand equation is stable in some aggregates as opposed to others. Both long-run and short-run relationships are considered in this paper. Overall, the results indicate...

Estimation Of The Demand For Money In Iran

Demand Shifts Due to Salience Effects: Experimental Evidence

We conduct a laboratory experiment that tests two fundamental predictions unique to salience theory. If an agent purchases one of two vertically differentiated products, salience theory makes the following two distinct predictions. First, it hypothesizes that a higher expected price level for both products shifts demand toward the more expensive, high-quality product. Second, it predicts that d...