Real Balances in the Utility Function: Evidence for Brazil
The aim of this paper is to examine the relevance of a money-in-the-utility-function model for the Brazilian economy. In addition to consumption, the household is supposed to derive utility from leisure and from the holdings of real balances. The system, formed by the first-order conditions of the household intertemporal problem (Euler equations), is estimated by generalized method of moments (GMM). The results show strong support for the presence of money in the utility function for Brazil.
Year of publication: |
2003-02
|
---|---|
Authors: | Alencar, Leonardo Soriano de ; Nakane, Márcio I. |
Institutions: | Central Bank of Brazil, Research Department |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Bank Competition, Agency Costs and the Performance of the Monetary Policy
Alencar, Leonardo Soriano de, (2004)
-
Demand for Bank Services and Market Power in Brazilian Banking
Nakane, Márcio I., (2006)
-
Koyama, Sérgio Mikio, (2007)
- More ...