This study has two purposes. First, it estimates the market, interest rate, and exchange rate sensitivities (betas) of the Japanese banking institutions. Second, it investigates the relationship between the market-based measures of risk and accounting-based financial ratios. We extend the...

The choice of the scale variable in the money demand function is important because of its striking implications on the magnitude and direction of the domestic monetary and fiscal policy effects and effectiveness of international policy coordination. In this study several tests are applied to the...

The purpose of this paper is to apply pair-wise and multiple-alternative nonnested tests to the choice of the scale variable in the money demand functions of Japan and Germany. Findings based on the multiple-alternative procedure indicate that domestic absorption (income minus net exports) is...