The puzzle with increasing money demand: Evidence from a cross-section of countries

Arbeitspapier

The ratio of money demand to GDP may increase with portfolio demand, monetization, and a deeper division of labor. Using a cross-section approach to money demand for 126 countries this study shows that the share of agriculture, life expectancy at birth, openness, and trust in the banking system capture a good deal of these influences. Once these variables are included, GNP per head negatively impacts on the ratio of money demand to GDP, which is in line with the standard result by Tobin and Baumol.

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• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Passauer Diskussionspapiere - Volkswirtschaftliche Reihe ; No. V-28-04

Classification and Topics

• Classification: Wirtschaft ; Demand for Money ; Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Graf Lambsdorff, Johann
• Event: Veröffentlichung
• (who): Universität Passau, Wirtschaftswissenschaftliche Fakultät
• (where): Passau
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/54998