Ghartey, Edward, E
Author Affiliation, Ana.
Department of Economics
Money demand in Jamaica: Evidence from cointegration, error correction modelling, and exogeneity
The North American Journal of Economics and Finance
Date of Publication
Cointegration test is used to establish a long-run equilibrium relationship among money demand, real income, price, exchange rate, exchange risk, and nominal interest rate. Different estimators are used to estimate the ECR model to study the short-run dynamic adjustment process of the demand for money. Statistically, both the long-run and the ECR model are well specified and significant. The estimates compare favourably with other results elsewhere, and both the long-run and ECR model are stable. The long-run price homogeneity and unit income elasticity exist, with both price and income being weakly and super exogenous.....