This study deals with the identification of demand for money function in Iran, Nigeria, and Venezuela. This is important in the study of monetary policy as a tool for influencing macroeconomic variables in these countries. / Prior to performing any tests, and based on the coefficients of the estimated consumption functions for the countries under study, two sets of permanent income values corresponding to gross domestic product (GDP) and non-oil GDP were calculated for each of these countries. Then, by evaluating the estimated coefficients of the log-linear forms of the variables and also evaluating the stability levels of these coefficients under the different specifications of the variables, the homogeneity of degree one on income, prices and population hypotheses was tested. All of these hypotheses were accepted for Iran and Nigeria, and while the one related to population was not rejected in the case of Venezuela, money proved to be "luxury" and the price elasticity proved to be less than one for this country. / Using the Chow test, it was concluded that current GDP is the proper "scale" variable for Iran and Venezuela and permanent GDP is the appropriate one for Nigeria. It was also proved that estimated coefficients related to investment-income ratio (as a proxy for interest rate) was statistically significant only for the case of Venezuela. / Developing an adaptive expectation model, the role of expectations in inflation was examined and denied in all cases, and it was proved that lag money stock can be considered to be an argument in the functions related to Iran and Venezuela. / The comparison of the R('2) and standard error of estimates led to the conclusion that nominal M1 is the proper money stock specification for Iran and Nigeria. The same result proved to be held for Venezuela only after a dynamic simulation technique was applied. / Finally, the crucial issue of stability was examined. The very smallness of the standard error of the generalized three stage least squares estimates of the parameters and the demand for money functions themselves exhibited the high predictability and the stability of these functions, suggesting the efficacy of monetary policy in stabilizing these three developing economies. / Source: Dissertation Abstracts International, Volume: 44-09, Section: A, page: 2848. / Thesis (Ph.D.)--The Florida State University, 1983.
Identifer | oai:union.ndltd.org:fsu.edu/oai:fsu.digital.flvc.org:fsu_75170 |
Contributors | NAZEMZADEH, ASGHAR., Florida State University |
Source Sets | Florida State University |
Detected Language | English |
Type | Text |
Format | 243 p. |
Rights | On campus use only. |
Relation | Dissertation Abstracts International |
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