Ghartey, Edward, E
Author Affiliation, Ana.
Department of Economics
Testing for weak-and super-exogeneity conditions of money demand functions in some Caribbean nations
Econometric Modelling of Issues in Caribbean
Date of Publication
3 & 4
Examines the exogeneity conditions of money demand in Barbados and Jamaica. The results indicate that real income and price in the conditional error correction model (ECM) are weak-form exogenous. The foreign exchange markets are weak-form inefficient in Barbados, and weak-form efficient in Jamaica. The various stability tests indicate that the regression coefficients are constant, while the recursive estimates also indicate that the conditional ECM of money demand are structurally invariant. Thus real income and price are super-exogenous in both countries. The models in both countries are reliable for monetary policy and forecasting. ....