Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/323257 
Year of Publication: 
2015
Citation: 
[Journal:] Southern Economic Journal [ISSN:] 2325-8012 [Volume:] 82 [Issue:] 1 [Publisher:] Wiley [Place:] Hoboken, NJ [Year:] 2015 [Pages:] 152-184
Publisher: 
Wiley, Hoboken, NJ
Abstract: 
This article checks whether money is an omitted variable in the production process by proposing a microfounded New Keynesian Dynamic Stochastic General Equilibrium model. In this framework, real money balances enter the production function, and money demanded by households is differentiated from that demanded by firms. Using a Bayesian analysis, our model weakens the hypothesis that money is a factor of production. However, the demand of money by firms appears to have a significant impact on the economy, even if this demand has a low weight in the production process.
Subjects: 
Money demand
Money supply
DSGE models
Bayesian estimation
Production function
Production factors
JEL: 
E23
E31
E51
Published Version’s DOI: 
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)
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