Abstract Using the STAR Model, the authors made a nonlinear empirical test of the error correction model for the money demand of our country. The result proved that the model showed a significant nonlinear characteristic. The form of it was ESTAR, and the conversion variable was the real national income lagged behind for a period. The conversion rate was significant but slow and the slope value of the transfer function was -2.64. The conclusions were consistent with the economic development in our country, reflecting the time lag of the control of monetary policy. The authors suggest using nonlinear model to study money demand function, accelerating the transition rate of monetary policy in different mechanisms and reducing time lag
ZHANG Lei,ZHANG Zong-Cheng. The Nonlinear Characteristics of China’s Money Demand Function--An Empirical Research on the Basis of STAR Model. Economic Survey, 2011, 28(2): 01.
2011, Vol. 28 
|
