Semi-Non-Parametric Estimates of Substitution for Canadian Monetary Assets

14 Pages Posted: 13 Nov 2002

See all articles by Adrian R. Fleissig

Adrian R. Fleissig

California State University, Fullerton - Department of Economics

Apostolos Serletis

University of Calgary - Department of Economics

Abstract

We estimate the dynamic Fourier expenditure system to obtain consistent estimates of short-run and long-run Morishima elasticities of substitution for Canadian liquid assets. We argue that the variability of the estimated elasticities and evidence of less than perfect substitution between monetary assets interferes with the successful use of simple-sum aggregates and traditional log-linear money-demand functions.

Suggested Citation

Fleissig, Adrian R. and Serletis, Apostolos, Semi-Non-Parametric Estimates of Substitution for Canadian Monetary Assets. Canadian Journal of Economics, Vol. 35, pp. 78-91, 2002. Available at SSRN: https://ssrn.com/abstract=308964

Adrian R. Fleissig (Contact Author)

California State University, Fullerton - Department of Economics ( email )

Fullerton, CA 92834
United States

Apostolos Serletis

University of Calgary - Department of Economics ( email )

2500 University Drive, NW
Calgary, Alberta T2N 1N4
Canada
403 220-4091 (Phone)
403 282-5262 (Fax)

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