Long-Run Demand for Money in Hong Kong: An Application of the ARDL Model

We examine the long-run demand for money of Hong Kong using the autoregressive distributed lag (ARDL) cointegration procedure on quarterly data over the period 1985Q1-1999Q4. Estimation results suggest that HK$M2 is cointegrated with its determinants. In addition, the CUSUM and CUSUMSQ tests confirm the stability of the money demand function.

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Year of publication:	2002
Authors:	Bahmani-Oskooee, Mohsen ; Ng, Raymond Chi Wing
Published in:	International Journal of Business and Economics. - College of Business, ISSN 1607-0704. - Vol. 1.2002, 2, p. 147-155
Publisher:	College of Business
Subject:	money demand \| Hong Kong \| cointegration \| error correction model \| CUSUM test

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Extent:	application/pdf text/html
Type of publication:	Article
Classification:	C12 - Hypothesis Testing ; C22 - Time-Series Models ; E41 - Demand for Money
Source:	RePEc - Research Papers in Economics

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