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Title: |
On the Variable Money Demand Elasticity: The Case of Taiwan |
| Author: |
Hsing, Yu |
| Author
Affiliation: |
SE Louisiana U |
| Source: |
International Economic Journal, Autumn 1989, v. 3, no. 3, pp. 43-52 |
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Publication Date: |
Autumn 1989 |
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Abstract: |
This study attempts to examine the
money-demand function for Taiwan by applying the BCEA model of Savin and
White (1978). Major findings are: (1) the conventional double-log form
is inappropriate for Taiwan; (2) the income elasticity of money demand
rose from 1.29 in 1969.2 to 1.74 in 1988.3, compared to a range of 0.6
to 0.8 estimated for the U.S.; and (3) the interest elasticity of money
demand varied from -0.25 to -0.62 during the same period. The author has
also found that estimated income and interest elasticities of money
demand for the U.S. varied widely during 1970-1987. |
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