Policy Uncertainty and the Demand for Money in Australia: an Asymmetry Analysis

Policy Uncertainty and the Demand for Money in Australia: an Asymmetry Analysis

Previous research has considered the impacts of both monetary and output uncertainty on the demand for money in Australia using a linear model and found that while output volatility has significantly positive effects, money supply volatility does not. Furthermore, the predictive power of the linear...

Ausführliche Beschreibung

Gespeichert in:
Bibliographische Detailangaben
Veröffentlicht in:Australian economic papers 2018-12, Vol.57 (4), p.456-469
Hauptverfasser: Bahmani‐Oskooee, Mohsen, Nayeri, Majid Maki
Format: Artikel
Sprache:eng
Schlagworte:
Economic models
Linear analysis
Money supply
Power
Uncertainty
Online-Zugang:Volltext
Tags: Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
container_end_page 469
container_issue 4
container_start_page 456
container_title Australian economic papers
container_volume 57
creator Bahmani‐Oskooee, Mohsen
Nayeri, Majid Maki
description Previous research has considered the impacts of both monetary and output uncertainty on the demand for money in Australia using a linear model and found that while output volatility has significantly positive effects, money supply volatility does not. Furthermore, the predictive power of the linear model was very low. In this paper, we use a nonlinear model and a new measure of uncertainty known as policy uncertainty and show that this new measure has significantly long‐run asymmetric effects on the demand for money in Australia. Due to the nonlinear adjustment of policy uncertainty measure, the new nonlinear model has a very high predictive power. The adjusted R2 moves from 0.30 in the linear model to 0.80 in the nonlinear model.
doi_str_mv 10.1111/1467-8454.12127
format Article
fullrecord <record><control><sourceid>proquest_cross</sourceid><recordid>TN_cdi_proquest_journals_2140731208</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><sourcerecordid>2140731208</sourcerecordid><originalsourceid>FETCH-LOGICAL-c3907-3c08efd9d3be7f648fef8665cda2291f08ffd2202c3b377e1e19da5eec668bc33</originalsourceid><addsrcrecordid>eNqFkLtPwzAQhy0EEqUws1piTutH4iRsUSkPqagdqMRmOc5ZuMqj2KmQ_3sSgli55c7W9zudPoRuKVnQoZY0FmmUxUm8oIyy9AzN_n7O0YwQEkc5Ie-X6Mr7w_BMEp7M0HbX1VYHvG81uF7Ztg9YtRXuPwA_QDOOpnP4tWshYNvi4uR7p2qr7gcMFz40DfQu4KJVdfDWX6MLo2oPN799jvaP67fVc7TZPr2sik2keU7SiGuSganyipeQGhFnBkwmRKIrxVhODcmMqRgjTPOSpylQoHmlEgAtRFZqzufobtp7dN3nCXwvD93JDUd4yWhMUk4ZyQZqOVHadd47MPLobKNckJTI0ZocHcnRkfyxNiTElPiyNYT_cFmsd8UU_AYcKG7E</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>2140731208</pqid></control><display><type>article</type><title>Policy Uncertainty and the Demand for Money in Australia: an Asymmetry Analysis</title><source>Wiley Online Library Journals Frontfile Complete</source><source>Business Source Complete</source><creator>Bahmani‐Oskooee, Mohsen ; Nayeri, Majid Maki</creator><creatorcontrib>Bahmani‐Oskooee, Mohsen ; Nayeri, Majid Maki</creatorcontrib><description>Previous research has considered the impacts of both monetary and output uncertainty on the demand for money in Australia using a linear model and found that while output volatility has significantly positive effects, money supply volatility does not. Furthermore, the predictive power of the linear model was very low. In this paper, we use a nonlinear model and a new measure of uncertainty known as policy uncertainty and show that this new measure has significantly long‐run asymmetric effects on the demand for money in Australia. Due to the nonlinear adjustment of policy uncertainty measure, the new nonlinear model has a very high predictive power. The adjusted R2 moves from 0.30 in the linear model to 0.80 in the nonlinear model.</description><identifier>ISSN: 0004-900X</identifier><identifier>EISSN: 1467-8454</identifier><identifier>DOI: 10.1111/1467-8454.12127</identifier><language>eng</language><publisher>Melbourne: John Wiley &amp; Sons Australia, Ltd</publisher><subject>Economic models ; Linear analysis ; Money supply ; Power ; Uncertainty</subject><ispartof>Australian economic papers, 2018-12, Vol.57 (4), p.456-469</ispartof><rights>2018 John Wiley &amp; Sons Australia, Ltd</rights><rights>2018 Flinders University and University of Adelaide and John Wiley &amp; Sons Australia, Ltd</rights><lds50>peer_reviewed</lds50><oa>free_for_read</oa><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c3907-3c08efd9d3be7f648fef8665cda2291f08ffd2202c3b377e1e19da5eec668bc33</citedby><cites>FETCH-LOGICAL-c3907-3c08efd9d3be7f648fef8665cda2291f08ffd2202c3b377e1e19da5eec668bc33</cites><orcidid>0000-0002-8242-7715</orcidid></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://onlinelibrary.wiley.com/doi/pdf/10.1111%2F1467-8454.12127$$EPDF$$P50$$Gwiley$$H</linktopdf><linktohtml>$$Uhttps://onlinelibrary.wiley.com/doi/full/10.1111%2F1467-8454.12127$$EHTML$$P50$$Gwiley$$H</linktohtml><link.rule.ids>314,776,780,1411,27901,27902,45550,45551</link.rule.ids></links><search><creatorcontrib>Bahmani‐Oskooee, Mohsen</creatorcontrib><creatorcontrib>Nayeri, Majid Maki</creatorcontrib><title>Policy Uncertainty and the Demand for Money in Australia: an Asymmetry Analysis</title><title>Australian economic papers</title><description>Previous research has considered the impacts of both monetary and output uncertainty on the demand for money in Australia using a linear model and found that while output volatility has significantly positive effects, money supply volatility does not. Furthermore, the predictive power of the linear model was very low. In this paper, we use a nonlinear model and a new measure of uncertainty known as policy uncertainty and show that this new measure has significantly long‐run asymmetric effects on the demand for money in Australia. Due to the nonlinear adjustment of policy uncertainty measure, the new nonlinear model has a very high predictive power. The adjusted R2 moves from 0.30 in the linear model to 0.80 in the nonlinear model.</description><subject>Economic models</subject><subject>Linear analysis</subject><subject>Money supply</subject><subject>Power</subject><subject>Uncertainty</subject><issn>0004-900X</issn><issn>1467-8454</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2018</creationdate><recordtype>article</recordtype><recordid>eNqFkLtPwzAQhy0EEqUws1piTutH4iRsUSkPqagdqMRmOc5ZuMqj2KmQ_3sSgli55c7W9zudPoRuKVnQoZY0FmmUxUm8oIyy9AzN_n7O0YwQEkc5Ie-X6Mr7w_BMEp7M0HbX1VYHvG81uF7Ztg9YtRXuPwA_QDOOpnP4tWshYNvi4uR7p2qr7gcMFz40DfQu4KJVdfDWX6MLo2oPN799jvaP67fVc7TZPr2sik2keU7SiGuSganyipeQGhFnBkwmRKIrxVhODcmMqRgjTPOSpylQoHmlEgAtRFZqzufobtp7dN3nCXwvD93JDUd4yWhMUk4ZyQZqOVHadd47MPLobKNckJTI0ZocHcnRkfyxNiTElPiyNYT_cFmsd8UU_AYcKG7E</recordid><startdate>201812</startdate><enddate>201812</enddate><creator>Bahmani‐Oskooee, Mohsen</creator><creator>Nayeri, Majid Maki</creator><general>John Wiley &amp; Sons Australia, Ltd</general><general>Blackwell Publishing Ltd</general><scope>AAYXX</scope><scope>CITATION</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope><orcidid>https://orcid.org/0000-0002-8242-7715</orcidid></search><sort><creationdate>201812</creationdate><title>Policy Uncertainty and the Demand for Money in Australia: an Asymmetry Analysis</title><author>Bahmani‐Oskooee, Mohsen ; Nayeri, Majid Maki</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c3907-3c08efd9d3be7f648fef8665cda2291f08ffd2202c3b377e1e19da5eec668bc33</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2018</creationdate><topic>Economic models</topic><topic>Linear analysis</topic><topic>Money supply</topic><topic>Power</topic><topic>Uncertainty</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Bahmani‐Oskooee, Mohsen</creatorcontrib><creatorcontrib>Nayeri, Majid Maki</creatorcontrib><collection>CrossRef</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>Australian economic papers</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Bahmani‐Oskooee, Mohsen</au><au>Nayeri, Majid Maki</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Policy Uncertainty and the Demand for Money in Australia: an Asymmetry Analysis</atitle><jtitle>Australian economic papers</jtitle><date>2018-12</date><risdate>2018</risdate><volume>57</volume><issue>4</issue><spage>456</spage><epage>469</epage><pages>456-469</pages><issn>0004-900X</issn><eissn>1467-8454</eissn><abstract>Previous research has considered the impacts of both monetary and output uncertainty on the demand for money in Australia using a linear model and found that while output volatility has significantly positive effects, money supply volatility does not. Furthermore, the predictive power of the linear model was very low. In this paper, we use a nonlinear model and a new measure of uncertainty known as policy uncertainty and show that this new measure has significantly long‐run asymmetric effects on the demand for money in Australia. Due to the nonlinear adjustment of policy uncertainty measure, the new nonlinear model has a very high predictive power. The adjusted R2 moves from 0.30 in the linear model to 0.80 in the nonlinear model.</abstract><cop>Melbourne</cop><pub>John Wiley &amp; Sons Australia, Ltd</pub><doi>10.1111/1467-8454.12127</doi><tpages>14</tpages><orcidid>https://orcid.org/0000-0002-8242-7715</orcidid><oa>free_for_read</oa></addata></record>
fulltext fulltext
identifier ISSN: 0004-900X
ispartof Australian economic papers, 2018-12, Vol.57 (4), p.456-469
issn 0004-900X
1467-8454
language eng
recordid cdi_proquest_journals_2140731208
source Wiley Online Library Journals Frontfile Complete; Business Source Complete
subjects Economic models
Linear analysis
Money supply
Power
Uncertainty
title Policy Uncertainty and the Demand for Money in Australia: an Asymmetry Analysis
url https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-02-02T12%3A10%3A16IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-proquest_cross&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Policy%20Uncertainty%20and%20the%20Demand%20for%20Money%20in%20Australia:%20an%20Asymmetry%20Analysis&rft.jtitle=Australian%20economic%20papers&rft.au=Bahmani%E2%80%90Oskooee,%20Mohsen&rft.date=2018-12&rft.volume=57&rft.issue=4&rft.spage=456&rft.epage=469&rft.pages=456-469&rft.issn=0004-900X&rft.eissn=1467-8454&rft_id=info:doi/10.1111/1467-8454.12127&rft_dat=%3Cproquest_cross%3E2140731208%3C/proquest_cross%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=2140731208&rft_id=info:pmid/&rfr_iscdi=true