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Sterken, E. The Financial Transactions Motive in the Dutch Money Demand Function. Credit and Capital Markets – Kredit und Kapital, 25(3), 386-405. https://doi.org/10.3790/ccm.25.3.386
Sterken, Elmer "The Financial Transactions Motive in the Dutch Money Demand Function" Credit and Capital Markets – Kredit und Kapital 25.3, 1992, 386-405. https://doi.org/10.3790/ccm.25.3.386
Sterken, Elmer (1992): The Financial Transactions Motive in the Dutch Money Demand Function, in: Credit and Capital Markets – Kredit und Kapital, vol. 25, iss. 3, 386-405, [online] https://doi.org/10.3790/ccm.25.3.386

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The Financial Transactions Motive in the Dutch Money Demand Function

Sterken, Elmer

Credit and Capital Markets – Kredit und Kapital, Vol. 25 (1992), Iss. 3 : pp. 386–405

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Elmer Sterken, Groningen

References

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  18. Blanchard, O. J. and Fischer, S., 1989: Lectures on Macroeconomics, Cambridge: MIT Press.  Google Scholar
  19. Campbell, J. Y. and Mankiw, N. G., 1989: Consumption, Income, and Interest Rates: Reinterpreting the Time Series Evidence, NBER Working Paper, 2924.  Google Scholar
  20. Davidson, J., Hendry, D. F., Srba, F. and Yeo, S., 1978: Econometric Modelling of the Aggregate Time-series Relationship between Consumers’ Expenditure and Income in the United Kingdom, Economic Journal 88, 661 – 662.  Google Scholar
  21. Dickey, D. A. and Fuller, W. A., 1979: Distribution of the Estimators for Autoregressive Time Series with a Unit Root, Journal of the American Statistical Association, 74, 427 – 431. – Engle, R. F. and Granger, C. W.J., 1987: Co-Integration and Error Correction: Representation, Estimation and Testing, Econometrica, 55, 251 – 276.  Google Scholar
  22. Engle, R.F. and Yoo, B. S., 1987: Forecasting and Testingin Co-Integrated Systems, Journal of Econometrics, 35, 143 – 159.  Google Scholar
  23. Fase, M.M.G. and Kune, J. B., 1974: De vraag naar liquiditeiten in Nederland 1952 – 1971, De Economist, 122, 326 – 356.  Google Scholar
  24. Fase, M. M. G. and Winder, C., 1990: The Demand for Money in The Netherlands Revisited, De Economist, 138, 276 – 301.  Google Scholar
  25. Goldfeld, S. M., 1973: The Demand for Money Revisited, Brookings Papers on Economic Activity, 577 – 638. – Goodhart, C. A. E., 1982: Money, Information and Uncertainty, London: MacMillan.  Google Scholar
  26. Judd, J. J. and Scadding, J. L., 1982: The Search for a Stable Money Demand Function: A Survey of the Post-1973 Literature, Journal of Economic Literature, 20, 993 – 1023.  Google Scholar
  27. Knoop, H. S. van der and Hooijmans, F. C., 1985: De even wichtigheid van de huidige liquiditeitsquote, Maandschrift Economie, 50, 389 – 409.  Google Scholar
  28. Kuipers, S.K. and Wilpstra, B., 1978: On the Estimation and Stability of Demand for Money Functions for The Netherlands 1952 – 1976, Economies et Societes, Cahiers de ’ISMEA, Serie MO, no 1, Pouvoirs et Regulations Monetaires.  Google Scholar
  29. Kuipers, S. K. and Boertje, B., 1988: On the Causes of the Rise in the Liquidity Ratio in the Netherlands since the Early Eighties, De Economist, 136, 50 – 90.  Google Scholar
  30. Miller, M. H. and Orr, D., 1966: A Model of the Demand for Money by Firms, Quarterly Journal of Economics, 81, 413 – 435.  Google Scholar
  31. Nickell, S., 1985: Error Correction, Partial Adjustment and All That: An Expository Note, Oxford Bulletin of Economics and Statistics, 47, 119 – 129.  Google Scholar
  32. Sidrauski, M., 1967: Rational Choice and Patterns of Growth in a Monetary Economy, American Economic Review, 57, 534 – 544.  Google Scholar

Abstract

The Financial Transactions Motive in the Dutch Money Demand Function

In this article empirical evidence on the Dutch money demand function is shown. The importance of wealth effects on money demand both in the short- and long run is stressed. The long run money demand equations have been tested on their equilibrium properties. Corresponding short run equations have been modelled in Error Correction Models. It is shown that the macro money demand function needs a disaggregation into assets and sectoral demand functions in order to understand the recent increase in Dutch money demand