The New Divisia Monetary Aggregates

Barnett's Divisia monetary aggregates were derived to be elements of Diewert's class of superlative quantity index numbers. Relative to aggregation theory, Barnett's resulting monetary aggregates are strictly preferable to the official sum monetary aggregates, since the component monetary assets are not perfect substitutes. Formal empirical tests based on the relevant aggregation-theoretic criteria have likewise uniformly favored the Divisia monetary aggregates. The current article compares the Divisia with the sum monetary aggregates relative to numerous conventional policy-relevant criteria. The Divisia monetary aggregates, especially at high levels of aggregation, usually perform best in these tests.

[1]  D. Hancock.  The Financial Firm: Production with Monetary and Nonmonetary Goods , 1985, Journal of Political Economy.

[2]  W. Barnett.  Recent Monetary Policy and the Divisia Monetary Aggregates , 1984 .

[3]  Apostolos Serletis.  The Substitutability and Separability of Monetary , 1984 .

[4]  P. Spindt.  Modelling the Monetary Multiplier and the Controllability of the Divisia Monetary Quantity Aggregates , 1984 .

[5]  D. Fisher,et al.  The Translog Utility Function and the Demand for Money in the United States , 1984 .

[6]  Angus Deaton,et al.  Essays in the Theory and Measurement of Consumer Behaviour: In Honour of Sir Richard Stone , 1984 .

[7]  R. Barro,et al.  Measuring the Average Marginal Tax Rate from the Individual Income Tax , 1983 .

[8]  William A. Barnett,et al.  New Indices of Money Supply and the Flexible Laurent Demand System , 1983 .

[9]  L. R. Christensen,et al.  THE ECONOMIC THEORY OF INDEX NUMBERS AND THE MEASUREMENT OF INPUT, OUTPUT, AND PRODUCTIVITY , 1982 .

[10]  P. Cagan.  The Choice among Monetary Aggregates as Targets and Guides for Monetary Policy , 1982 .

[11]  L. R. Christensen,et al.  MULTILATERAL COMPARISONS OF OUTPUT, INPUT, AND PRODUCTIVITY USING SUPERLATIVE INDEX NUMBERS* , 1982 .

[12]  W. Barnett.  The New Monetary Aggregates: A Comment , 1981 .

[13]  Stephen Pudney,et al.  An Empirical Method of Approximating the Separable Structure of Consumer Preferences , 1981 .

[14]  W. E. Diewert,et al.  Essays in The theory and measurement of consumer behaviour in honour of Sir Richard Stone : The economic theory of index numbers: a survey , 1981 .

[15]  W. Barnett,et al.  New Concepts of Aggregated Money , 1981 .

[16]  W. Barnett,et al.  Empirical comparisons of Divisia and simple sum monetary aggregates , 1981 .

[17]  L. Haugh,et al.  The identification of time series interrelationships with special reference to dynamic regression models , 1981 .

[18]  William A. Barnett,et al.  Economic monetary aggregates an application of index number and aggregation theory , 1980 .

[19]  Edward K. Offenbacher.  Economic monetary aggregates--comment , 1980 .

[20]  P. A. Tinsley,et al.  Indicator and filter attributes of monetary aggregates: A nit-picking case for disaggregation , 1980 .

[21]  Keith M. Caelson.  Money, Inflation, and Economic Growth: Some Updated Reduced Form Results and Their Implications , 1980 .

[22]  Richard D. Porter,et al.  Some issues involving the de nition and interpretation of the monetary aggregates , 1980 .

[23]  E. Feige,et al.  The Casual Causal Relationship between Money and Income: Some Caveats for Time Series Analysis , 1979 .

[24]  S. Taylor.  Forecasting Economic Time Series , 1979 .

[25]  G. William Schwert,et al.  Tests of causality: The message in the innovations , 1979 .

[26]  W. Barnett,et al.  The velocity behavior and information content of Divisia monetary aggregates , 1979 .

[27]  D. Donovan.  Modeling the Demand for Liquid Assets: An Application to Canada , 1978 .

[28]  William A. Barnett,et al.  The user cost of money , 1978 .

[29]  P. Tinsley,et al.  The measurement of money demand , 1978 .

[30]  Larry D. Haugh,et al.  Causality in temporal systems: Characterization and a survey , 1977 .

[31]  James R. Barth,et al.  The ‘moneyness’ of financial assets , 1977 .

[32]  E. Feige,et al.  The Substitutability of Money and Near-Monies: A Survey of the Time-Series Evidence , 1977 .

[33]  Peter A. Tinsley,et al.  Linear prediction and estimation methods for regression models with stationary stochastic coefficients , 1980 .

[34]  J. Moroney,et al.  Money and Money Substitutes: A Time Series Analysis of Household Portfolios , 1976 .

[35]  Walter Diewert,et al.  Exact and superlative index numbers , 1976 .

[36]  John D. Paulus,et al.  Some Problems of Money Demand , 1976 .

[37]  David V. Pritchett.  Econometric policy evaluation: A critique , 1976 .

[38]  R. Lucas.  Econometric policy evaluation: A critique , 1976 .

[39]  S. Goldfeld.  The Case of the Missing Money , 1976 .

[40]  K. Wall.  Fiml Estimation of Rational Distributed Lag Structural Form Models , 1975 .

[41]  B. Klein.  Competitive Interest Payments on Bank Deposits and the Long-Run Demand for Money: Reply , 1974 .

[42]  J. Bisignano.  Real money substitutes , 1974 .

[43]  V. K. Chetty,et al.  On Measuring the Nearness of Near-Moneys: Reply , 1972 .

[44]  C. Sims.  Money, Income, and Causality , 1972 .

[45]  V. Chetty.  On Measuring the Nearness of the Near-Moneys , 1969 .

[46]  W. E. Silver,et al.  Economics and Information Theory , 1967 .

[47]  James Tobin,et al.  The Interest-Elasticity of Transactions Demand For Cash , 1956 .

[48]  William J. Baumol,et al.  The Transactions Demand for Cash: An Inventory Theoretic Approach , 1952 .

[49]  L. Törnqvist.  The Bank of Finland's consumption price index , 1936 .

[50]  R. Hawtrey.  The art of central banking , 1932 .

[51]  R. Hawtrey.  Money and Index-Numbers , 1930 .

[52]  I. Fisher,et al.  The Making of Index Numbers: A Study of Their Varieties, Tests, and Reliability , 1923 .