Acceso usuarios
B.Bhaskara Rao, Saten Kumar
The demand for money (M1) for the US is estimated with annual data from 1960 to 2008 and its stability is analysed with the extended Gregory and Hansen (1996b9. Gregory , AW and Hansen , BE . 1996b . Tests for cointegration in models with regime and trend shifts . Oxford Bulletin of Economics and Statistics , 58 : 555 � 9 .
[CrossRef], [Web of Science ®] View all references) test. In addition to estimating the canonical specification, alternative specifications are estimated which include a trend and additional variables to proxy the cost of holding money. Results with our extended specification showed that there has been a structural change in 1998 and the constraint that income elasticity is unity could not be rejected by subsample estimates. Short run dynamic adjustment equations are estimated with the lagged residuals from the Fully Modified Ordinary Least Squares (FMOLS) estimates of cointegrating equation and also with the General to Specific (GETS) approach.
