A Dynamic Baumol-Tobin Model of Money Demand

S-Tier
Journal: Review of Economic Studies
Year: 1986
Volume: 53
Issue: 3
Pages: 465-469

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This note considers a stochastic version of the Baumol-Tobin model of the demand for money. A dynamic demand function is derived for the case in which independent variables change to new, steady-state values. The (S, s) inventory policy is shown to give rise to an aggregate, partial-adjustment equation with a variable adjustment speed. The methodology is that introduced to target-threshold models by Milbourne, Buckholtz, and Wasan (1983) in their study of the Miller-Orr model.

Technical Details

RePEc Handle
repec:oup:restud:v:53:y:1986:i:3:p:465-469.
Journal Field
General
Author Count
1
Added to Database
2026-01-29