ISSN 1011-8888
INSTITUTE OF ECONOMIC STUDIES
WORKING PAPER SERIES
W98:07
May 1998
The Representative Household’s Demand
for Money in a Cointegrated VAR Model
Thórarinn G. Pétursson
Address:
E-mail:
Department of Economics
University of Iceland
Oddi at Sturlugotu
101 Reykjavik
ICELAND
NA
Please forward all comments to Pétursson
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Dy
Constant
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1980
1985
1990
1995
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-.5
1975
1980
1985
1990
1995
1980
1985
1990
1995
1990
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1980
1985
1990
1995
1975
1
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1%
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0
-.05
1975
1980
1985
1990
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1975
1980
1985
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5;
INSTITUTE OF ECONOMIC STUDIES WORKING PAPERS 1995-1998
Formerly Iceland Economic Papers Series
Editor Tryggvi Thor Herbertsson
A com plete list of IoES W ork ing Pape rs and R e prints can be accessed on our W orld W ide W e b site at
h ttp://w w w .h ag.h i.is/ioe s .
W95:08 Thorarinn G. Petursson: Backward and Forward Looking Error Correction Models of Inflation in
Iceland
W95:09 Kurt Schuler: The Case Against Central Banking in Devoloping Countries with a Postscript on
Iceland
W95:10 Tryggvi Thor Herbertsson and Gudmundur Magnusson: Accounting for Growth in the Five Nordic
Countries, 1971-1992
W95:11 Thorarinn G. Petursson: Are Prices Forward Looking? Evidence from Iceland
W96:01 Thorolfur Matthiasson: Why Fishing Fleets Tend to be “Too Big”
W96:02 Birgir Runolfsson and Ragnar Arnason: Iceland’s ITQ System: Evolution and Performance
W96:03 Tryggvi Thor Herbertsson and Sigridur Benediktsdottir: Growth and Environmental Policies in
Iceland: A Descriptive Account
W96:04 Fridrik M. Baldursson and Gudmundur Magnusson: Portfolio Fishing
W96:05 Jon Danielsson and Casper G. de Vries: Tail Index and Quantile Estimation with Very High
Frequency Data
W96:06 Thorolfur Matthiasson: Cost Sharing and Catch Sharing
W96:07 Thorolfur Matthiasson: Local Governments in the Icelandic ITQ Market. Will they find it
rational to sell
W96:08 Tor Einarsson and Milton H. Marquis: Transitional and Steady-state Costs of a Credible Disinflation
Policy When Growth is Endogenous
W96:10 Anders Sørensen: Economic Growth: A Survey
W96:11 Ralph E. Townsend: Fisheries Management Implications of Alaskan Community Development Quotas
W96:12 Jon Danielsson: Multivariate Stochastic Volatility Models: Estimation and a Comparison with
VGARCH Models
W97:01 Thorvaldur Gylfason: Icelandic Economists: Have They Made a Difference? – A Personal View –
W97:02 Fridrik M. Baldursson: Modelling the Price of Industrial Commodities
W97:03 Edmund S. Phelps and Gylfi Zoega: The Incidence of Increased Unemployment in the Group of
Seven, 1970-1994
W97:04 Thorolfur Matthiasson: Fixed Wage or Share: Contingent Contract Renewal and Skipper Motivation
INSTITUTE O F ECO NO M IC STUD IES
W97:05 Jon Danielsson and Casper G. de Vries: Extreme Returns, Tail Estimation, and Value-at-Risk
W97:06 Tor Einarsson and Milton H. Marquis: Fiscal Policy in an Endogenous Growth Model with Home
Production
W97:07 Tor Einarsson and Milton H. Marquis: Formal Training, On-the job Training, and the Allocation of
Time
W97:08 Tor Einarsson and Milton H. Marquis: Fiscal Policy Analysis under Alternative Mechanisms of
Endogenous Growth
W97:09 Tryggvi Thor Herbertsson and Anders Sørensen: Policy Rules for Exploitation of Renewable
Resources: A Macroeconomic Perspective
W97:10 Ragnar Arnason: Developments in Ocean Fisheries Management: Implications for the Volume and
Quality of Fish Supply
W97:11 Thorvaldur Gylfason: Prospects for Liberalization of Trade in Agriculture
W97:12 Thorvaldur Gylfason, Tryggvi Thor Herbertsson and Gylfi Zoega: A Mixed Blessing: Natural
Resources and Economic Growth
W97:13 J. Michael Orszag, Edmund S. Phelps and Gylfi Zoega: Education and the Natural Rate of
Unemployment
W98:01 Leianne A. Clements and Janice B. Breuer: Will Dollar Depreciation Improve the U.S.-Japanese
Trade Deficit? A Disaggregated Study
W98:02 Leianne A. Clements: What is Behind the U.S.-Japanese Trade Imbalance? Just the Facts on the
Commodity Composition of U.S. Japanese Trade
W98:03 Tryggvi Thor Herbertsson: Accounting for Human Capital Externalities. With an Application to the
Nordic Countries
W98:04 Gylfi Magnusson: Internal and External Migration in Iceland 1960-94: A Structural Model,
Government Policies, and Welfare Implications
W98:05 Thorvaldur Gylfason, Tryggvi Thor Herbertsson, and Gylfi Zoega: Ownership and Growth
W98:06 Thorarinn G. Petursson: Explaining th e Te rm Stucture : Th e Expectations H ypoth e s is and Tim e
Varying Te rm Pre m ia
W98:07 Thorarinn G. Petursson: The Representative Houshold’s Demand for Money in a Cointegrated VAR
Model
W98:08 Tryggvi Thor Herbertsson and Gylfi Zoega: Trade Surpluses and Life-cycle Saving Behaviour
W98:09 Thorvaldur Gylfason: Privatization, Efficiency, and Economic Growth
W98:10 Tor Einarsson and Milton Marquis: Uncertain Labor Quality and Asset Pricing
W98:11 J. Michael Orzag: Actuarial Discretion vs. Rules in Regulation of Pension Funds
W98:12 J. Michael Orzag: From Unemployment Benefits to Unemployment Support Accounts
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