Money Demand and Income Distribution: Evidence from Annual Data Export

@article{cover/hooks:93, abstract = {Transactions (and precautionary) theories of money demand imply that the more unequal the distribution of income (or transactions), the lower the demand for money. This paper presents evidence that contradicts this implication of transactions theories of money demand. Using annual U.S. data, it is found that as income becomes more unequally distributed, the demand for money increases rather than decreases. The result is found to be robust to a variety of distribution measures and money-demand specifications.}, author = {Cover, James P. and Hooks, Donald L.}, citeulike-article-id = {160626}, citeulike-linkout-0 = {http://www.jstor.org/stable/2109468}, journal = {The Review of Economics and Statistics}, keywords = {money}, number = {3}, pages = {520--523}, posted-at = {2005-04-14 11:57:43}, priority = {2}, title = {Money Demand and Income Distribution: Evidence from Annual Data}, url = {http://www.jstor.org/stable/2109468}, volume = {75}, year = {1993} }

TY - JOUR ID - cover/hooks:93 L3 - citeulike-article-id:160626 N2 - Transactions (and precautionary) theories of money demand imply that the more unequal the distribution of income (or transactions), the lower the demand for money. This paper presents evidence that contradicts this implication of transactions theories of money demand. Using annual U.S. data, it is found that as income becomes more unequally distributed, the demand for money increases rather than decreases. The result is found to be robust to a variety of distribution measures and money-demand specifications. IS - 3 JF - The Review of Economics and Statistics EP - 523 TI - Money Demand and Income Distribution: Evidence from Annual Data VL - 75 SP - 520 KW - money AU - Cover, James AU - Hooks, Donald PY - 1993/// UR - http://www.jstor.org/stable/2109468 ER -