Official websites use .gov
A .gov website belongs to an official government organization in the United States.
Secure .gov websites use HTTPS
A lock (
) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
Topics
Data & Maps
Surveys & Programs
Resource Library
The buffer stock model of money demand: evidence from panel data
The buffer stock model of money demand: evidence from panel data
Working Paper Number SEHSD-WP2010-27
Abstract
One of the tenets of the buffer stock model of money demand is that transactions money balances are shock absorbers and transitory money balances would dissipate in the long run as actual money demand adjusts to its desired level following an unanticipated income shock. However, poor performance of the standard partial dynamic aggregate money demand model since the middle 1973s has seriously challenged the validity of the buffer stock model. Utilizing panel data, this study empirically shows that the speed of adjustment is fast at the microeconomic level, and the long-run parametric estimates are not as implausible as those suggested in past aggregate studies on money demand.
Others in Series
Working Paper
Using SIPP to Gauge the Behavior of TANF Recipients
Examines the behaviors of welfare recipients as they pertain to meeting the fundamental goal of Welfare Reform.
Working Paper
Medical Out-of-Pocket Expenses, Poverty, and the Uninsured
This research offers three general refinements to incorporate MOOP expenditures into the poverty measure.
Working Paper
Child Care Costs in the Current Population Survey’s ASEC
This paper assesses child care cost estimates from the 2010 Current Population Survey’s
Annual Social and Economic Supplement (CPS ASEC).
Page Last Revised - October 8, 2021
✕
Is this page helpful?
Yes
No
Yes
No✕
NO THANKS
255 characters maximum
255 characters maximum reached
255 characters maximum reached
✕
Thank you for your feedback.
Comments or suggestions?
Comments or suggestions?
