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Conventionally, the money demand function is estimated using a regression of the logarithm of money demand on either the interest rate or the logarithm of the interest rate. This equation is presumed ...
Sharon Bernstein Megdal, The Econometrics of Piecewise-Linear Budget Constraints: A Monte Carlo Study, Journal of Business & Economic Statistics, Vol. 5, No. 2 (Apr., 1987), pp. 243-248 ...