TY  - JOUR
AU  - Ball,Laurence
TI  - Another Look at Long-Run Money Demand
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6597
PY  - 1998
Y2  - June 1998
UR  - http://www.nber.org/papers/w6597
L1  - http://www.nber.org/papers/w6597.pdf
N1  - Author contact info:
Laurence M. Ball
Department of Economics
Johns Hopkins University
Baltimore, MD 21218
Tel: 410/516-7605
Fax: 410/516-7600
E-Mail: lball@jhu.edu
AB  - This paper investigates the long-run demand for M1 in the postwar United States.  Previous  studies, based on data ending in the late 1980's, are inconclusive about the parameters of postwar money demand.  This paper obtains precise estimates of these parameters by extending the data through 1996.  The income elasticity of money demand is approximately 0.5, and the interest semi-elasticity is approximately -0.05.  These parameters are significantly smaller in absolute value than the corresponding parameters for the prewar period.
ER  -