This paper introduces a new application for structural vector autoregression methodology in applying the technique to identifying money velocity gaps for a sample of developing countries. SVAR methodology using long-run restrictions is used to construct money-velocity gaps for a large sample of...

This paper examines the role of disequilibrium conditions in influencing price adjustment processes in developing countries. Measures of real and financial sector disequilibrium are constructed for a sample of 58 developing countries over the period 1973-1998 using structural VAR methodology....