|Bond Yield Uncertainty and the Demand for Money: A Comment
||The purpose of this paper is to reconsider the work recently reported by Amihud that the demand for money is an increasing function of the risk of holding bonds. Our evidence from testing annual and quarterly Cambridge k and demand-for-money e...
|A Cubic Estimate of the Term Structure of Interest Rates for a Money Demand Function
||Heller and Khan (1979) estimate the term structure of interest rates by a quadratic equation in order to employ the estimated parameters of the term structure in a demand-for-money function. An important improvement of their estimates can be made by ...
|Declining Productivity Revisited: Secular Trends or Cyclical Losses?
||Dickens (1982) argued that the productivity slowdown since the mid 1960s is cyclical and not a long-term trend. This letter tests the robustness of Dickens' conclusion, specifically with respect to labor productivity....
|Deficits and Money Growth in the United States: A Comment
||Joines (1985) argues that the Federal Reserve accommodates war-induced deficit spending but not non-war-induced deficit spending. Using a first-difference form of a reaction function to obtain a stationary time series of the monetary base, we find th...
|The Determinants of the Tax-Adjusted Real Interest Rate
||A reduced-form real interest rate equation, derived from an IS-LM-AS model, is estimated to examine the relationship between real interest rates, the federal debt, supply shocks, monetary policy and other variables. The federal debt coefficient is co...
|Did the Swiss Demand for Money Function Shift?
||The purpose of this note is to test the stability of a short-run money demand function for Switzerland during the breakdown of tile fixed exchange rate system and for the OPEC crisis. The evidence suggests that the function was unstable due to interc...
|The differing effects of pre- and post-1981 federal budget deficits on tax-adjusted real interest rates
||This paper employs an estimating equation relating tax-adjusted real interest rates to deficits and other economic variables to examine the differing effects of pre- and post-1981 federal budget deficits on ex ante and ex post real tax-adjusted short...
|The effect of federal deficits and debt on the tax-adjusted, short-term, real interest rate
||The stock versus flow effect of the federal debt/deficit on a real interest rate is examined in a reduced-form equation. The evidence shows a positive and significant linkage between the federal debt and an ex-post, tax-adjusted, short-term, real int...
|The Federal Reserve and the Electoral Cycle
||Economic forecasts for a presidential election year always consider the alleged existence of an electoral cycle that is orchestrated by vote-maximizing incumbents to ensure their party's reelection. The assumption of vote-maximizing behavior by polit...
|Financial Market Effects on Aggregate Money Demand: A Bayesian Analysis
||Empirical researchers in aggregate money demand have long been concerned with the degree of substitutability between money and other capital assets and the impact on money holdings of financial markets developments. Despite the potential importance o...
|Government Borrowing and Monetary Accommodations
||This paper re-examines the relationship between Treasury borrowing and monetary growth examined previously with annual data by Barro, Niskanen and Hamburger and Zwick. Our analysis, based on quarterly data, produces evidence of a positive and signifi...
|Government borrowing and tax-adjusted real and nominal interest rates
||The purpose of this paper is to test for the effect of Federal Government budget deficits on one-year tax-adjusted nominal and real interest rates in an IS-LM-AS model. The results suggest that the specification of the dependent variable is a crucial...
|The Impact of Demand and Cost Factors on Inflation in Open Economies
||Bruno  develops a theoretical model of the wage-price adjustment process in an open economy to consider the dynamic impact of changes in import prices and exchange rates. In his model nominal wages are a function of the excess demand for labor, im...
|The Implementation of a Terminal Master’s Program in Applied Economics
||This paper examines the impacts of transforming a traditional master’s program into a professionally-oriented, terminal degree program in applied economics. Alumni surveys were conducted before and after the curricular innovation and the results indi...
|The influence of elections on federal reserve behavior
||A political business cycle is tested in a monetary reaction function. Positive evidence is a result of the 1930s and 1940s and not post-war elections. In addition, there is no evidence of such a cycle in a rational expectations model....
|Introducing the Effective Marginal Tax Rate in Introductory Macroeconomics
||Introductory macroeconomics textbooks rarely cover the topic of marginal tax rates in sufficient depth to make it meaningful to students. We offer a simple method of introducing the concept of effective marginal tax rate that is interactive and will ...
|Klein's Price Variability Terms in the U.S. Demand for Money: A Note
||One recent innovation in the empirical work on the demand for money has been the inclusion of a measure of the past or future variability of the inflation rate or the interest rate.1 One particularly unique empirical and theoretical treatm...
|Money Demand and the Term Structure of Interest Rates: Some Consistent Estimates
||Heller and Khan (1979, hereafter HK) employ a quadratic function of the term structure of interest rates to obtain quarterly coefficient estimates of its level, slope and curvature. These estimates are substituted for the interest rate variable in a ...
|A multinominal logit analysis of the influence of policy variables and board experience on FOMC voting behavior
||Previous studies have used probit or logit models to analyze two states of monetary policy (tighter or looser). In this paper we employ multinominal logit to permit Federal Reserve monetary policy to assume one of three alternative states (tighter, l...
|Nixon and Ford as Ex-Post Keynesians
||Reestimation of a growth rate version of the St. Louis equation suggests that the equation does believe in fiscal policy, but only for the Nixon-Ford administrations....
|A Note on the Implicit Interest Rate on Demand Deposits
||This paper examines the significance of several estimated measures of the implicit interest rate on demand deposits in an annual demand-for-money function. The evidence demonstrates that the coefficient estimates of the implicit interest rate are not...
|The Political Business Cycle: How Significant?
||This article provides evidence that the seasonally adjusted unemployment rate conforms to a four-year political business cycle such as the one hypothesized by Nordhaus (1976) but only when the incumbent party wins the presidential election. The unemp...
|Pretesting Students to Improve Teaching and Learning
||The focus of this paper is on developing ways to evaluate teaching performance on a regular basis as a means of improving teaching effectiveness and increasing student learning in the classroom. In particular, this paper shows how an instructor-devel...
|A reduced form estimate of Swiss inflation
||The significance of various domestic and international variables as contributors to the inflationary pressures in Switzerland are tested by a reduced-form equation estimate. The evidence suggests that Swiss inflation has resulted primarily from monet...
|Rising Swiss Inflation?
||The apparent success of the Swiss in conquering high rates of inflation and maintaining an inflation rate of below two percent for over two years does not mean that the current policies of the Swiss Central Bank will continue this performance. Expect...
|The St. Louis Equation: A Decade Later
||Ever Since the publication of the "St. Louis Equation" by Anderson and Jordan and its later appearance as a conerstone of the St. Lois Model, the equation has been the subject of great debate. The equation showed that quarterly changes in the money s...
|Student Learning in the Principles of Economics Course at Predominantly Black and White Universities: Lessons from Two Schools
||What Do We Know About The Economic Education Of African American College Students?
Despite attempts within the economics profession over the past decade to increase the representation of minority groups in economics, the low number of African Americ...
|Swiss Inflation and the Two Versions of the Monetary Approaches to the Balance of Payments
||The framework for this study is provided by the monetary approach to the balance of payments (MABP) whose major precepts are discussed in Section 1. The Swiss case provides an excellent counterexample to the conclusions which may arise from the MABP ...
|The Textile, Apparel, and Footwear Act of 1990: Determinants of Congressional Voting
||This article uses probit analysis to examine the effect of political and economic variables on the probability of senators and representatives voting favorably on the Textile, Apparel, and Footwear Trade Act of 1990. The results show that voting beha...
|The use of inputs by the Federal Reserve System: An extended mode
||Recently it has been argued that bureaucratic incentives play an important role in the formulation of policy and the inflationary bias of the Federal Reserve System [Shughart and Tollison (1983), hereafter S—T].1 In particular S—T maintain that the F...
|Variability of the Inflation Rate and the Forward Premium in a Money Demand Function: The Case of the German Hyperinflation
||Since Cagan's (1956) classic study, the specification of the demand for money in the German hyperinflation has attracted much attention....