A Semi-Nonparametric Approach to the Demand for UK Monetary Assets

22 Pages Posted: 12 Apr 2003

See all articles by Leigh M. Drake

Leigh M. Drake

affiliation not provided to SSRN

Adrian R. Fleissig

California State University, Fullerton - Department of Economics

James L. Swofford

University of South Alabama

Abstract

We estimate an asymptotically ideal model of the demand for UK personal sector monetary assets. We use data that are consistent with utility-maximizing behaviour, and find that UK monetary assets are generally substitutes in use. The estimated elasticities of substitution during the 1980s and the early 1990s indicate that a relatively broad monetary aggregate should be used in economic studies. The results also suggest that any policy based on interest or user cost elasticities of substitution between financial assets should be based on the Morishima elasticities, as the Allen-Uzawa calculation can give misleading results.

Suggested Citation

Drake, Leigh M. and Fleissig, Adrian R. and Swofford, James L., A Semi-Nonparametric Approach to the Demand for UK Monetary Assets. Economica, Vol. 70, pp. 99-120, 2003. Available at SSRN: https://ssrn.com/abstract=388217

Leigh M. Drake (Contact Author)

affiliation not provided to SSRN

Adrian R. Fleissig

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

Fullerton, CA 92834
United States

James L. Swofford

University of South Alabama ( email )

307 University Blvd
Mobile, AL 36688
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
32
Abstract Views
458
PlumX Metrics