Structural change and innovation in the market for financial services in recent years have drawn attention to the fact that traditional definitions of money as included in demand for money models and monetary aggregation measures may be misspecified. It is unclear whether or to what extent broader measures of money should be used as targets in monetary policy or as indicators of changes in the real economy. This thesis is a nonparametric empirical test of monetary asset, leisure and consumption good data which seeks to examine whether the underlying structure of preferences implied by monetary aggregation can be said to be justified. Using recent software routines, we test Canadian data for the years 1968-I to 1989-IV in order to determine whether it meets the criteria for utility maximization and for a structure of preferences represented by weak separability. We find that only a narrow grouping of monetary assets meets these requirements. Further, we conclude that many other studies in the literature which have merely assumed weak separability have been misspecified.
| Identifer | oai:union.ndltd.org:LACETR/oai:collectionscanada.gc.ca:QMM.22577 |
| Date | January 1994 |
| Creators | Cunningham, James K. (James Kenneth) |
| Contributors | Handa, J. (advisor) |
| Publisher | McGill University |
| Source Sets | Library and Archives Canada ETDs Repository / Centre d'archives des thèses électroniques de Bibliothèque et Archives Canada |
| Language | English |
| Detected Language | English |
| Type | Electronic Thesis or Dissertation |
| Format | application/pdf |
| Coverage | Master of Arts (Department of Economics.) |
| Rights | All items in eScholarship@McGill are protected by copyright with all rights reserved unless otherwise indicated. |
| Relation | alephsysno: 001462144, proquestno: MM05374, Theses scanned by UMI/ProQuest. |
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