Application Of The Alternative Techniques To Estimate Demand For Money In Developing Countries

Singh, Rup; Kumar, Saten

doi:10.1353/jda.2012.0036

Cited by 12 publications

(12 citation statements)

References 27 publications

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“…This supports the findings of Kumar et al (2013). This is also in line with other studies that focus on developing countries such as Singh and Kumar (2012), Nachega (2001) and Barro et al (2016). By implication, money is mostly held for the purpose of medium of exchange in Nigeria.…”

Section: Empirical Analysissupporting

confidence: 93%

Financial Liberalization and Long-Run Stability of Money Demand in Nigeria

Folarin

Asongu

2017

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractA stable money demand function is essential when using monetary aggregate as a monetary policy. Thus, there is need to examine the stability of the money demand function in Nigeria after the deregulation of the financial sector. To achieve this, the study employed CUSUM (cumulative sum) and CUSUMSQ (CUSUM squared) tests after using autoregressive distributive lag bounds test to determine the existence of a long run relationship between monetary aggregate and its determinant. Results of the study show that a long-run relationship holds and that the demand for money is stable in Nigeria. In addition, the inflation rate is found to be a better proxy for an opportunity variable when compared to interest rate. The main implication of the study is that interest rate is ineffective as a monetary policy instrument in Nigeria.

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Section: Empirical Analysissupporting

confidence: 93%

Financial Liberalization and Long-Run Stability of Money Demand in Nigeria

Folarin

Asongu

2017

SSRN Journal

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“…He also found that inflation exerted a significant influence on money demand in four of the countries. Singh and Kumar (2012) using alternative time series techniques for 12 developing countries found for almost all the sample countries that, the interest elasticities were well determined and significant. Abdullah, Ali, and Matahir (2010) reexamined the demand for money in Singapore, Malaysia, Thailand, Indonesia, and the Philippines.…”

Section: Empirical Evidence From Developing Countriesmentioning

confidence: 94%

An Investigation into the Interest Elasticity of Demand for Money in Developing Countries: A Panel Data Approach

Nyumuah¹

2017

IJEF

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The issue as to whether the interest rate influences the demand for money in developing countries is still controversial. The aim of this study is to attempt to resolve this controversy. The study uses panel data from eight African countries to look at the interest elasticity of demand for money in developing countries. The countries used in the study are Angola (ANG), Equatorial Guinea (EQG), Gambia (GMB), Guinea-Bissau (GBS), Kenya (KNY), Mali (MLI), Nigeria (NGR) and Uganda (UGD). Overall, the study finds the interest rate to be inelastic in the short run but elastic in the long run. This finding suggests that monetary policy is ineffective in developing countries in the long run.

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“…Identification and endogeneity tests are also mandatory in this method. A good exposition of the JML technique can be found in Holtedahl and Joutz (2004), Singh and Kumar (2009) and Kumar (2009). 7 The results from other options such as no intercept or trend, unrestricted intercept no trend, unrestricted intercept restricted trend and unrestricted intercept unrestricted trend gave implausible income elasticity.…”

Section: Cointegration and Granger Causalitymentioning

confidence: 99%

Cointegration and the demand for energy in Fiji

Kumar

2011

IJGEI

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This paper applies alternative time series techniques such as General to Specific (GETS) and Johansen Maximum Likelihood (JML) to estimate the long run income and price elasticities of demand for energy for Fiji. We also test for the causal relationship between energy consumption, GDP and energy prices using the Granger causality tests. Our results imply that there is a uni-directional causality running from GDP to energy consumption.

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Application Of The Alternative Techniques To Estimate Demand For Money In Developing Countries

Cited by 12 publications

References 27 publications

Financial Liberalization and Long-Run Stability of Money Demand in Nigeria

Financial Liberalization and Long-Run Stability of Money Demand in Nigeria

An Investigation into the Interest Elasticity of Demand for Money in Developing Countries: A Panel Data Approach

Cointegration and the demand for energy in Fiji

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