Measurement Error and a Reinterpretation of the Conventional Money Demand Regression

32 Pages Posted: 24 Aug 2012

See all articles by Marvin Goodfriend

Marvin Goodfriend

Carnegie Mellon University - David A. Tepper School of Business; National Bureau of Economic Research (NBER)

Date Written: March 1, 1983

Abstract

It has been sixteen years since a partial adjustment model was first applied in empirical money demand studies by Chow [1996]. Since then the partial adjustment specification has become widely used, particularly in quarterly money demand studies. However, in spite of its widespread use, the theoretical rationalization for the partial adjustment specification has never been entirely satisfactory.

Suggested Citation

Goodfriend, Marvin, Measurement Error and a Reinterpretation of the Conventional Money Demand Regression (March 1, 1983). FRB Richmond Working Paper No. 83-3. Available at SSRN: https://ssrn.com/abstract=2117893 or http://dx.doi.org/10.2139/ssrn.2117893

Marvin Goodfriend (Contact Author)

Carnegie Mellon University - David A. Tepper School of Business ( email )

5000 Forbes Avenue
Pittsburgh, PA 15213-3890
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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