The Review of Economics and Statistics Vol. 78 No. 2 1996
Long-Run Money Demand in Canada: In Search of Stability
Abstract
The authors search for a long-run cointegrating relationship among real money balances, real income, and interest rates, extending the work of Steve Ambler and Algin Paquet (1990), who explore this issue in the Canadian context employing the methods of Robert F. Engle and Clive W. Granger (1987). First, they uncover parameter estimates of the cointegrated relationships using three different methods of estimation. Second, the authors employ the Hansen (1992) procedure to search for structural instability in cointegrating relationships with unknown break points. They find empirical support for a stable cointegrating relationship among real M1, real income, and short-term interest rates in Canada for the period 1953:1-1990:4.
- DOI
- 10.2307/2109938
- Volume
- 78
- Issue
- 2
- Pages
- 345
- Sources
- crossref openalex