Money Supply and Capital Accumulation on the Transition Path Revisited

B-Tier
Journal: Journal of Money, Credit, and Banking
Year: 2010
Volume: 42
Issue: 6
Pages: 1173-1184

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

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

Abstract

Fischer (1979) and Asako (1983) analyze the sign of the correlation between the growth rate of money and the rate of capital accumulation on the transition path. Both plug a constant relative risk aversion utility (based on a Cobb–Douglas and a Leontief function, respectively) into Sidrauski's model—yet return contrasting results. The present analysis, by using a more general CES utility, presents both of those settings and conclusions as limiting cases and generates economic figures more consistent with reality (e.g., the interest rate elasticity of the money demands derived from those previous works is necessarily 1 and 0, respectively).

Technical Details

RePEc Handle
repec:wly:jmoncb:v:42:y:2010:i:6:p:1173-1184
Journal Field
Macro
Author Count
2
Added to Database
2026-01-25