Template-Type:ReDIF-Paper 1.0  
Title: Aggregation Bias in Estimating European Money Demand Functions
Author-Name:Wesche, Katrin
Classification-JEL:E47, C43
Keywords: Demand for Money, Nonlinear Aggregation, European monetary Union
Abstract: Recently, money demand functions for a group of European countries have been estimated and
	generally have been found to perform better than most national money demand functions. While parameter
	equality is a sufficient condition for valid aggregation of linear equations, in money demand estimation often
	log-linear specifications are used, so that aggregation is in effect nonlinear. This makes the relation between
	the aggregate and the individual equations more complicated. To investigate if the conditions for unbiased
	linear aggregation are also valid for logarithmic aggregation, a simulation study is performed.
Length: pages
Creation-Date: 1996-11
Revision-Date: 
Handle: RePEc:bon:bonsfb:393
File-URL: http://www.wiwi.uni-bonn.de/bgsepapers/bonsfb/bonsfb393.pdf
File-Format: application/pdf
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