The methodology is based on an application of nonlinear ESTR ECM by Kapetanios et al.
(2006) to analyze the short-run dynamic adjustment to long-run equilibrium in Taiwan money
demand function. We take consideration of Taiwan as a small open economy system, the exchange
rate could be included in money demand function. The result indicate that using ESTR
ECM to analyze the adjustment behavior of money demand function in Taiwan is better than
linear ECM. Our findings point out that the public adjusts at any time for holding money and
the speed of adjustment for real balances depends on the size of deviation.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0630109-174317 |
| Date | 30 June 2009 |
| Creators | Chen, Chi-chang |
| Contributors | Yuan-ho Hsu, Ching-nun Lee, Chun-chieh Wang |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0630109-174317 |
| Rights | not_available, Copyright information available at source archive |
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