IS THE PRICE ELASTICITY OF MONEY DEMAND ALWAYS UNITY?

IS THE PRICE ELASTICITY OF MONEY DEMAND ALWAYS UNITY?

Including both monetary gold and nonmonetary gold in a standard money‐in‐utility model, we establish a presumption that the price elasticity of money demand should be less than 1 under commodity standards. Applying cointegration methods to data of the world, the United Kingdom, and the United States...

Ausführliche Beschreibung

Gespeichert in:
Bibliographische Detailangaben
Veröffentlicht in:Economic inquiry 2008-10, Vol.46 (4), p.587-592
Hauptverfasser: EVANS, PAUL, WANG, XIAOJUN
Format: Artikel
Sprache:eng
Schlagworte:
Analysis
Cointegration analysis
Demand
Demand for money
Elasticity (Economics)
Monetary economics
Money
Money demand
Price elasticity
Studies
Time series
U.S.A
United Kingdom
Utility functions
Online-Zugang:Volltext
Tags: Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
Beschreibung
Zusammenfassung:Including both monetary gold and nonmonetary gold in a standard money‐in‐utility model, we establish a presumption that the price elasticity of money demand should be less than 1 under commodity standards. Applying cointegration methods to data of the world, the United Kingdom, and the United States, we find support for the new theory. (JEL E41, E42)
ISSN:0095-2583
1465-7295
DOI:10.1111/j.1465-7295.2007.00113.x