{"id":50827,"date":"2023-12-01T17:30:06","date_gmt":"2023-12-01T16:30:06","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/modelling-short-run-money-demand-for-the-us\/"},"modified":"2024-04-19T19:06:34","modified_gmt":"2024-04-19T17:06:34","slug":"modelling-short-run-money-demand-for-the-us","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/50827\/","title":{"rendered":"Modelling Short-run Money Demand for the US"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-50827","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"There is a vast amount of empirical evidence concerning the cointegrating relationship between money demand, some kind of interest rate and income. In contrast to this, short-run dynamics are still opaque. In the existing literature, the return to steady state is modelled quite differently. The range goes from simple error correction models to non-linear approaches. Here a method is proposed for considering not only disequilibria between money demand and its steady state of only the last period but also those of the recent past in a parsimonious and economically meaningful way. Different to multicointegration, weights for cumulating steady-state deviations are geometrically decreasing the more they are located in the past. This model possesses an ARMA (1,1) representation and leads to an ARMAX model if combined with a conventional error correction model. This approach is shown to track money demand short-run dynamics better and more parsimoniously than partial-adjustment models.","onlinedate":"2017-09-01 00:00:00","lang":"English","publication_series":"","publication_date":"20170901","publication_date_year":"","publication_date_full":false,"publication_num_pages":"","keywords":"[\"Short-run money demand\",\"cumulative error-correction model\"]","jelcodes":"[\"E41\"]","related_publications":"[]","pdf":null,"zip":null,"link":"http:\/\/redfame.com\/journal\/index.php\/aef\/issue\/view\/115","monthly_report":false,"monthly_report_main":false,"monthly_report_volume":"4","monthly_report_pages":"9-20","monthly_report_pages_sort":"9","issue":"5","journal":"Applied Economics and Finance","publisher":"","invisible":false,"external":true,"embargo_date":null,"types":[83083],"research_groups":[3500],"collaboration":"","persons":[3837],"persons_data":"[{\"personId\":3837,\"personName\":\"Marcus Scheiblecker\",\"organisationNames\":[]}]","clients":[],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","scientific_assistance":"[]","scientific_review":"[]","version":"","release_date":null,"expiration_date":null,"surveyor":"","research_assistance":"","edv":"","additional_info_de":"","additional_info_en":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - 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