Conventionally, the money demand function is estimated using a regression of the logarithm of money demand on either the interest rate or the logarithm of the interest rate. This equation is presumed ...

This article presents a Monte Carlo evaluation of some alternative estimators for a demand model when the budget constraint is piecewise-linear and the budget set is convex.

Assuming a log-linear demand function, we allow a demand shock of a constant shift as well as a slope change. We show that different quantities identify the demand shock in the two cases. The KN ...