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| Volume 1, No. 2,
August 2002
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| Long-Run
Demand for Money in Hong Kong: An Application of the ARDL Model |
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| Mohsen Bahmani-Oskooee |
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Department of Economics,
University of Wisconsin-Milwaukee, U.S.A. |
| Raymond Chi Wing Ng |
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Centre for Asian Pacific
Studies, Lingnan University, Hong Kong |
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| Abstract |
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| 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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Key words: money
demand; Hong Kong; cointegration; error correction model; CUSUM
test |
JEL
classification:
C12; C22; E41
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