Belongia, Michael (2005): Where simple sum and Divisia monetary aggregates part: illustrations and evidence for the United States.
Download (628Kb) | Preview
Empirical studies of money continue to use the Federal Reserve's official simple sum indexes, apparently in the belief that their behavior differs little from patterns exhibited by superlative indexes of money. This paper illustrates specific periods when this assumption is refuted and offers explanations for why simple sum and superlative indexes of money are likely to move differently at economic turning points.
|Item Type:||MPRA Paper|
|Original Title:||Where simple sum and Divisia monetary aggregates part: illustrations and evidence for the United States|
|Keywords:||Divisia monetary aggregates; index number problems|
|Subjects:||E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E51 - Money Supply; Credit; Money Multipliers
E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy
|Depositing User:||Michael Belongia|
|Date Deposited:||04. Dec 2009 23:17|
|Last Modified:||12. Feb 2013 18:05|
Anderson, Richard G., Barry E. Jones and Travis D. Nesmith. "Special Report: The Monetary Services Indexes Project of the Federal Reserve Bank of St. Louis," Federal Reserve Bank of St. Louis Review (January/February 1997), pp. 31-82.
Barnett, William A. "Beyond the Risk-Neutral Utility Function," in, M.T. Belongia and J. Binner (eds.) Divisia Monetary Aggregates: Theory and Practice. London: Palgrave. (2000).
_______."Which Road Leads to Stable Money" Economic Journal (June 1997), pp. 1171-85
________. "Recent Monetary Policy and the Divisia Monetary Aggregates," The American Statistician (August 1984), pp. 165-72 ________."The User Cost of Money," Economics Letters Vol. 1, No. 2 (1978), pp. 145-49.
________, Douglas Fisher and Apostolos Serletis. "Consumer Theory and the Demand for Money," Journal of Economic Literature (December 1992), pp. 2086-2119.
________, Edward K. Offenbacher and Paul A. Spindt. "The New Divisia Monetary Aggregates," Journal of Political Economy (December 1984), pp. 497-505.
Belongia, Michael T. "Consequences of Money Stock Mismeasurement: Evidence for Three Countries," in M.T. Belongia and J. Binner (eds.), Divisia Monetary Aggregates: Theory and Practice, London: Palgrave. (2000).
_______. "Empirical Properties of Multipliers for Divisia Monetary Aggregates," working paper, Department of Economics, University of Mississippi (2004).
_______. "Measurement Matters: Some Recent Results in Monetary Economics Re-Examined," Journal of Political Economy (October 1996), pp. 1083-65.
_______. "Weighted Monetary Aggregates: A Historical Survey," Journal of International and Comparative Economics (Winter 1995), pp. 87-114.
_______ and Jane Binner (eds.) Divisia Monetary Aggregates: Theory and Practice. London: Palgrave. (2000).
Christ, Carl F. “Assessing Applied Econometric Results,” Federal Reserve Bank of St. Louis Review (March/April 1993), pp. 71-94.
Diewert, Erwin."Exact and Superlaltive Index Numbers," Journal of Econometrics (May 1976), pp. 115-45.
________. "Superlative Index Numbers and Consistency in Aggregation," Econometrica (July 1978), pp. 883-900.
Friedman, Milton. Newsweek. September 26, 1983, p. 84.
Gilbert, R. Alton. "A Case Study in Monetary Control: 1980-82," Federal Reserve Bank of St. Louis Review (September/October 1994), pp. 35 – 58.
Issing, Otmar, H. Hermann and K.H. Todter, "Zinsgewichte Geldmengenaggregate und M3 - eing Vergleich," Kredit und Kapital (I, 1993), pp. 1-21.
Jones, Barry. Kavajecz, Kenneth A. "The Evolution of the Federal Reserve's Monetary Aggregates: A Timeline," Federal Reserve Bank of St. Louis Review (March/April 1994), pp. 32-66.
Rotemberg, Julio J., John C. Driscoll and James M. Poterba. "Money, Output and Prices: Evidence from a New Monetary Aggregate," Journal of Business and Economic Statistics (January 1995), 67-83.
Swofford, James and Gerald Whitney. "Nonparametric Tests of Utility Maximization and Weak Separability for Consumption, Leisure and Money," Review of Economics and Statistics (August 1987), pp. 458-64.
________. "Comparison of Nonparametric Tests of Weak Separability for Annual and Quarterly Data on Consumption, Leisure and Money," Journal of Business and Economic Statistics (April 1988), pp. 241-46.