Luetkepohl, Helmut; Teräsvirta, Timo; Wolters, Jürgen - 1998
Starting from a linear error correction model the stability and linearity of a German M1 money demand function are investigated, applying smooth transition regression techniques. Using seasonally unadjusted data from 1961 (1) to 1990 (2) it is found that the money demand equation is both linear...