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Money and Output: A Test of Reverse Causation

Publication ,  Journal Article
Coleman, WJ
Published in: American Economic Review
March 1, 1996

This paper attempts to explain the correlation between money and output at various leads and lags with a model in which money is largely neutral and endogenously responds to output. Money is endogenous because both monetary policy and deposit creation are endogenous. Parameters are selected according to the simulated moments estimation technique. While the estimated model succeeds along some dimensions in matching properties of postwar U.S. data, its failure to match key patterns of lead-lag correlations seems to cast doubt on the ability of endogenous money determination, by itself, to quantitatively account for the observed money-output correlations.

Duke Scholars

Published In

American Economic Review

ISSN

0002-8282

Publication Date

March 1, 1996

Volume

86

Issue

1

Start / End Page

90 / 111

Related Subject Headings

  • Economics
  • 38 Economics
  • 35 Commerce, management, tourism and services
  • 15 Commerce, Management, Tourism and Services
  • 14 Economics
 

Citation

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Coleman, W. J. (1996). Money and Output: A Test of Reverse Causation. American Economic Review, 86(1), 90–111.
Coleman, W. J. “Money and Output: A Test of Reverse Causation.” American Economic Review 86, no. 1 (March 1, 1996): 90–111.
Coleman WJ. Money and Output: A Test of Reverse Causation. American Economic Review. 1996 Mar 1;86(1):90–111.
Coleman, W. J. “Money and Output: A Test of Reverse Causation.” American Economic Review, vol. 86, no. 1, Mar. 1996, pp. 90–111.
Coleman WJ. Money and Output: A Test of Reverse Causation. American Economic Review. 1996 Mar 1;86(1):90–111.

Published In

American Economic Review

ISSN

0002-8282

Publication Date

March 1, 1996

Volume

86

Issue

1

Start / End Page

90 / 111

Related Subject Headings

  • Economics
  • 38 Economics
  • 35 Commerce, management, tourism and services
  • 15 Commerce, Management, Tourism and Services
  • 14 Economics