Abstract

The income elasticity of money demand is one of the most frequently estimated parameters in economics, but the individual estimates of the elasticity vary a lot. In this paper we present a quantitative survey of the literature estimating this parameter. We collect previous empirical estimates of the elasticity from many studies and analyze why the estimated elasticities differ so much. We test whether the literature is affected by the so-called publication selection bias; that is, if estimates consistent with mainstream theories tend to be published more often. Moreover, we analyze whether the reported estimates of the elasticity differ systematically across countries, estimation methods, and time periods.

The article is written in Czech. The abstract above is the English one the journal printed with it. The online appendix, also in Czech, describes the variables, lists the 73 studies and reports additional results. The replication file holds the data set of 985 estimates and the Stata code.

Reference: Tomas Havranek, Jana Sedlarikova (2014), "A Meta-Analysis of the Income Elasticity of Money Demand." Politicka Ekonomie 62(3): 366-382.

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How to cite

Tomas Havranek, Jana Sedlarikova (2014), "A Meta-Analysis of the Income Elasticity of Money Demand." Politicka Ekonomie 62(3): 366-382.

BibTeX 
@article{havranek2014money,
  author  = {Tomas Havranek and Jana Sedlarikova},
  title   = {A Meta-Analysis of the Income Elasticity of Money Demand},
  journal = {Politicka Ekonomie},
  volume  = {62},
  number  = {3},
  pages   = {366--382},
  year    = {2014},
  doi     = {10.18267/j.polek.956},
}