420-430

• Βαρσακέλης, Νικόλαος Χ.

This paper deals with the development and the estimation of a demand for money function for a small open economy. The determinants of the demand for money function are the foreign exchange rate, the price level of non-tradeable goods, the interest and the current income. Data for the Greek economy for the period, first trimester 1975 to last trimester 1984 were used for the estimation of the demand function. According to the estimations, money is a complement good to the non-tradeable goods, but it is a substitute to the foreign exchange. Currency substitution exists in the case of Greece during the examination period. Finally, the demand for money function seems to exhibit economies of scale with respect to income.

• Economics and Business
• Computer and information sciences

• Economics
• Statistics

Περιέχει πίνακες, σημειώσεις και βιβλιογραφία, Το άρθρο αυτό παρουσιάστηκε σε µια πρώτη µορφή στην XX Conference της Aplied Econometric Association στην Γενεύη τον Ιανουάριο του 1987.