A Note on the Implicit Interest Rate on Demand Deposits

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Stuart D. Allen, Professor (Creator)
Institution
The University of North Carolina at Greensboro (UNCG )
Web Site: http://library.uncg.edu/

Abstract: 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 positive and statistically significant as predicted due to the scarcity of data points and the high collinearity with other opportunity cost variables.

Additional Information

Publication
Journal of Macroeconomics, 5(2), Spring/Summer, 233-239.
Language: English
Date: 1983
Keywords
Demand for money, Interest rates, Money,

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