The demand for money in Greece: evidence through a shopping-time technology model and cointegration

Abstract

The objective of this paper is to estimate a long-run version of money demand in Greece through
cointegration tests and over the period 1978-1995. The feature that distinguishes this paper from the
conventional ad-hoc money demand models is that the money demand function is derived through a
shopping-time technology which seems the proper approach when the reason for holding money balances
is the motive of minimizing the transactions costs.