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Gillman, Max; Otto, Glenn. |
The paper presents a theory of the demand for money that combines a special case of the shopping time exchange economy with the cash-in-advance framework. The model predicts that both higher inflation and financial innovation - that reduces the cost of credit - induce agents to substitute away from money towards exchange credit. This results in an interest elasticity of money that rises with the inflation rate rather than the constant elasticity found in standard shopping time specifications. A number of the key predictions of the banking time theory are tested using quarterly data for the US and Australia. We find cointegration empirical support for the model, with robustness checks and a comparison to a standard specification. |
Tipo: Working or Discussion Paper |
Palavras-chave: Money demand; Cointegration; Financial technology; Banking time; O42; E13; E41; E51; Financial Economics. |
Ano: 2003 |
URL: http://purl.umn.edu/26221 |
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Sharma, Kishor. |
The consequences of liberalization on structural changes are examined using data from manufacturing industry in Nepal which is classified as a least developed country. This is important because doubts that liberalization may not solve the problems of low-income developing countries remain strong due mainly to low supply elasticities and the early stage of industrialization. Results suggest some structural changes in manufacturing output and trade orientation. However, no significant improvements were recorded in the overall productivity growth and spatial distribution of manufacturing which appear to be due mainly to the lack of basic infrastructure and the shortage of skilled manpower. Thus, appropriate investment policies, which channel resources to... |
Tipo: Working or Discussion Paper |
Palavras-chave: Liberalization; Import penetration; Export intensity; Total factor productivity growth; Nepal; International Relations/Trade; E13; F13; F14; F43; 041. |
Ano: 2000 |
URL: http://purl.umn.edu/28394 |
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