122Kb
by Ozturk, Ilhan
and Acaravci, Ali
Published in Romanian Journal of Economic Forecasting,
2008, volume 9 issue 2, 35-43.
|
| Requires a PDF viewer such as Xpdf
or Adobe
Acrobat Reader 122Kb |
This paper examines the long-run determinants of the demand for money in ten transition countries using panel data for the 1994-2005 period. Using panel unit root tests we rejected the the null hypothesis of the nonstationarity and employed the feasible generalized least squares (FGLS) model. Consistent with theoretical postulates, it is found that (a) the demand for money in the long-run positively responds to real GDP and inversely to the inflation and the real effective exchange rate and (b) the long-run income elasticity is about unity.
Keywords:
rdemand for money, transition economies, panel unit root test, feasible GLS
JEL Classification:
E41, C33