In Starrett's [1] elegant and important study, there is an oversight in the statement of Lemma 1 (p. 446). The sense of the inequality in equation (

Walter Perrin Heller, Ross M. Starr; Unemployment Equilibrium with Myopic Complete Information, The Review of Economic Studies, Volume 46, Issue 2, 1 April 1979

Journal Article Equilibrium with Non-convex Transactions Costs: Monetary and Non-monetary Economies Get access Walter Perrin Heller, Walter Perrin Heller University of California, San Diego Search for other works by this author on: Oxford Academic Google Scholar Ross M. Starr Ross M. Starr University of California, Davis Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 43, Issue 2, June 1976, Pages 195–215, https://doi.org/10.2307/2297318 Published: 01 June 1976

Estimated U.S. M1 demand functions appear unstable, regularly “breaking down,” over 1960–1988 (e.g. missing money, great velocity decline, M1-explosion). We propose a money demand function whose arguments include inflation, real income, long-term bond yield and risk, T-bill interest rates, and learning curve weighted yields on newly introduced instruments in M1 and non-transactions M2. The model is estimated in dynamic error-correction form; it is constant and, with an equation standard error of 0–4%, variance-dominates most previous models. Estimating alternative specifications explains earlier “breakdowns,” showing the model's distinctive features to be important in accounting for the data.