Stock prices and long-run demand for money in three selected ASEAN countries Indonesia, Malaysia, and Thailand

Earlier study on money demand has omitted the influence of stock prices in the domestic demand for money especially in ASEAN countries. This paper investigates the relationship between stock prices and the long-run money demand function in Indonesia,Malaysia and Thailand using the multivariate coin...

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Main Author:	Tan, Chin Sin
Format:	Thesis
Language:	English
Published:	2003
Subjects:	Stocks - Prices - Southeast Asia Money supply - Southeast Asia Money - Southeast Asia
Online Access:	http://psasir.upm.edu.my/id/eprint/48915/7/FEP%202003%205R.pdf
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id	my-upm-ir.48915
record_format	uketd_dc
spelling	my-upm-ir.489152016-11-16T02:04:53Z Stock prices and long-run demand for money in three selected ASEAN countries Indonesia, Malaysia, and Thailand 2003-04 Tan, Chin Sin Earlier study on money demand has omitted the influence of stock prices in the domestic demand for money especially in ASEAN countries. This paper investigates the relationship between stock prices and the long-run money demand function in Indonesia,Malaysia and Thailand using the multivariate cointegration and error correction model methodology. Results show that stock prices playa significant role in the determination of stationary long-run real M2 demand function in those countries. The direction and magnitude of the role of stock price depends upon the country and also the sampling period included. The results from the vector error correction model (VECM) provide evidence of causality between the real money stock and the determinants of the money demand (including real stock prices). Stocks - Prices - Southeast Asia Money supply - Southeast Asia Money - Southeast Asia 2003-04 Thesis http://psasir.upm.edu.my/id/eprint/48915/ http://psasir.upm.edu.my/id/eprint/48915/7/FEP%202003%205R.pdf application/pdf en public masters Universiti Putra Malaysia Stocks - Prices - Southeast Asia Money supply - Southeast Asia Money - Southeast Asia
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English
topic	Stocks - Prices - Southeast Asia Money supply - Southeast Asia Money - Southeast Asia
spellingShingle	Stocks - Prices - Southeast Asia Money supply - Southeast Asia Money - Southeast Asia Tan, Chin Sin Stock prices and long-run demand for money in three selected ASEAN countries Indonesia, Malaysia, and Thailand
description	Earlier study on money demand has omitted the influence of stock prices in the domestic demand for money especially in ASEAN countries. This paper investigates the relationship between stock prices and the long-run money demand function in Indonesia,Malaysia and Thailand using the multivariate cointegration and error correction model methodology. Results show that stock prices playa significant role in the determination of stationary long-run real M2 demand function in those countries. The direction and magnitude of the role of stock price depends upon the country and also the sampling period included. The results from the vector error correction model (VECM) provide evidence of causality between the real money stock and the determinants of the money demand (including real stock prices).
format	Thesis
qualification_level	Master's degree
author	Tan, Chin Sin
author_facet	Tan, Chin Sin
author_sort	Tan, Chin Sin
title	Stock prices and long-run demand for money in three selected ASEAN countries Indonesia, Malaysia, and Thailand
title_short	Stock prices and long-run demand for money in three selected ASEAN countries Indonesia, Malaysia, and Thailand
title_full	Stock prices and long-run demand for money in three selected ASEAN countries Indonesia, Malaysia, and Thailand
title_fullStr	Stock prices and long-run demand for money in three selected ASEAN countries Indonesia, Malaysia, and Thailand
title_full_unstemmed	Stock prices and long-run demand for money in three selected ASEAN countries Indonesia, Malaysia, and Thailand
title_sort	stock prices and long-run demand for money in three selected asean countries indonesia, malaysia, and thailand
granting_institution	Universiti Putra Malaysia
publishDate	2003
url	http://psasir.upm.edu.my/id/eprint/48915/7/FEP%202003%205R.pdf
_version_	1747812007517618176

Stock prices and long-run demand for money in three selected ASEAN countries Indonesia, Malaysia, and Thailand

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