El-Shagi, Makram / Zheng, Yizhuang



In this paper we reexamine the literature on money demand in China published both in English and Chinese language. Over the past 30 years - starting with the paper by Chow (1987) there has been a regular stream of papers assessing the Chinese money demand function. The literature is mostly focusing on income elasticity, stability, and - which is special for China - the adequate choice and quality of data. In particular regarding stability of money demand, we find a substantial publication bias towards rejecting stability. When controlling for publication bias, and focusing on longer time periods, our paper strongly suggests stable long run money demand in China.


China, money demand, income elasticity, stability meta analysis


El-Shagi, M. / Zheng, Y.: Money Demand in China - A Meta Analysis, in: Emerging Markets, Finance and Trade (forthcoming)