Understanding money demand of Argentina: 1935-2000

This paper investigates whether or not a simple -Cagan like- econometric model of demand for currency can be developed for Argentina based on more than sixty years of data (1935-2000). For such a long period the presence of structural breaks cannot be ignored given the variety of economic regimes th...

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Autores principales: Ahumada, Hildegart, Garegnani, María Lorena
Formato: Objeto de conferencia
Lenguaje:Inglés
Publicado: 2002
Materias:
Economía
política monetaria
Argentina
econometría
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/3724
http://www.depeco.econo.unlp.edu.ar/jemi/2002/trabajo1.pdf
Aporte de:
SEDICI (UNLP) de Universidad Nacional de La Plata
id I19-R120-10915-3724
record_format dspace
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Economía
política monetaria
Argentina
econometría
spellingShingle Economía
política monetaria
Argentina
econometría
Ahumada, Hildegart
Garegnani, María Lorena
Understanding money demand of Argentina: 1935-2000
topic_facet Economía
política monetaria
Argentina
econometría
description This paper investigates whether or not a simple -Cagan like- econometric model of demand for currency can be developed for Argentina based on more than sixty years of data (1935-2000). For such a long period the presence of structural breaks cannot be ignored given the variety of economic regimes this country has experienced. The purpose is to understand from an "ex-post" perspective how money holdings have reacted to the two main determinants of their demand: a transaction variable and an opportunity cost after suitable approximations for both concepts could be obtained. Transaction elasticity estimates matter for the distribution effects of inflation tax and for measuring the size of the shadow economy. Besides, a comparative analysis of the effect of inflation, interest rates and exchange rates could clarify about the relevant opportunity cost of holding money. Once two values of the transaction elasticity were taken for the long run relationship (1 and 0.5) and inflation and interest rates alternatively measured the opportunity cost of holding money, a stable money demand -a satisfactory approximation to the data generating process- was obtained for the Argentina case.
format Objeto de conferencia
Objeto de conferencia
author Ahumada, Hildegart
Garegnani, María Lorena
author_facet Ahumada, Hildegart
Garegnani, María Lorena
author_sort Ahumada, Hildegart
title Understanding money demand of Argentina: 1935-2000
title_short Understanding money demand of Argentina: 1935-2000
title_full Understanding money demand of Argentina: 1935-2000
title_fullStr Understanding money demand of Argentina: 1935-2000
title_full_unstemmed Understanding money demand of Argentina: 1935-2000
title_sort understanding money demand of argentina: 1935-2000
publishDate 2002
url http://sedici.unlp.edu.ar/handle/10915/3724
http://www.depeco.econo.unlp.edu.ar/jemi/2002/trabajo1.pdf
work_keys_str_mv AT ahumadahildegart understandingmoneydemandofargentina19352000
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bdutipo_str Repositorios
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