Household Demand for Assets: A Model of Short-Run Adjustments
M OST recent studies of the demand for assets (real or financial) restrict themselves to the examination of the market for a single asset or small group of similar assets. This approach contrasts with the usual treatment of the demand for consumer goods in which complete systems of equations are estimated. This paper reports an attempt to develop a complete set of asset-demand functions for the household sector and to present estimates of the parameters derived from postwar United States data.