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How Robust are Money Demand Estimations?

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Knell, M., Stix, H. How Robust are Money Demand Estimations?. . A Meta-Analytic Summary of Findings about Income Elasticities. Credit and Capital Markets – Kredit und Kapital, 38(4), 515-540. https://doi.org/10.3790/ccm.38.4.515
Knell, Markus and Stix, Helmut "How Robust are Money Demand Estimations?. A Meta-Analytic Summary of Findings about Income Elasticities. " Credit and Capital Markets – Kredit und Kapital 38.4, 2005, 515-540. https://doi.org/10.3790/ccm.38.4.515
Knell, Markus/Stix, Helmut (2005): How Robust are Money Demand Estimations?, in: Credit and Capital Markets – Kredit und Kapital, vol. 38, iss. 4, 515-540, [online] https://doi.org/10.3790/ccm.38.4.515

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How Robust are Money Demand Estimations?

A Meta-Analytic Summary of Findings about Income Elasticities

Knell, Markus | Stix, Helmut

Credit and Capital Markets – Kredit und Kapital, Vol. 38 (2005), Iss. 4 : pp. 515–540

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Markus Knell, Vienna

Helmut Stix, Vienna

References

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Abstract

In this paper we conduct a meta-analysis of empirical money demand studies involving almost 500 individual money demand estimations. We analyze whether the wide variety of results can be explained by characteristics of the studies or the imprecision of individual estimates. We find that estimates for the income elasticity of money are systematically related to various study characteristics (e.g., broadness of the monetary aggregate, inclusion of financial innovation and wealth). Nevertheless, a substantial part of the variability remains unexplained. (JEL E41, E52)