Household sector money demand for the UK

Rakesh Bissoondeeal, Barry E. Jones, Jane Binner, Andrew W. Mullineux

Research output: Contribution to journalArticle

Abstract

We test for the existence of a long-run money demand relationship for the UK involving household-sector Divisia and simple sum monetary indexes for the period from 1977 to 2008. We construct our Divisia index using non-break-adjusted levels and break-adjusted flows following the Bank of England. We test for cointegration between the real Divisia and simple sum indexes, their corresponding opportunity cost measures, real income and real share prices. Our results support the existence of a long-run money demand relationship for both the Divisia and simple sum indexes.
Original languageEnglish
Pages (from-to)90-113
Number of pages24
JournalManchester School
Volume78
Issue numbers1
Early online date3 Aug 2010
DOIs
Publication statusPublished - Sep 2010

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