October 20th, 2020

Discussion Paper 2020/4 is now available: El-Shagi, M. / Zheng, Y.: Money Demand: A Pseudo-Metastudy


In this paper, we provide conclusive evidence on the role of measurement and estimation techniques in money demand estimation. Over the past few decades, there have been 100s of papers assessing money demand in the main economies of the globe. We develop a pseudo-metastudy framework where, based on modeling choices found in the literature, we estimate thousands of different specifications for the US, China, the UK and the Euro area, allowing us to assess what has driven the diverging results in the previous literature.