Testing Long-Run Monetary Neutrality in Malaysia: Revisiting Divisia Money
This study re-examines the long-run neutrality (LRN) of money on real output in Malaysia using quarterly Divisia money data from 1981:1 to 2004:4 based on Fisher and Seater’s (1993) nonstructural reduced form bivariate ARIMA model. Special attention has been given in identifying the number of unit r...
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| Format: | Working Paper |
| Language: | English |
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Universiti Malaysia Sarawak, (UNIMAS)
2011
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| Online Access: | http://ir.unimas.my/id/eprint/3244/ http://ir.unimas.my/id/eprint/3244/1/Testing%2Blong-run%2Bmonetary%2Bneutrality%2Bin%2BMalaysia-Revisiting%2Bdivisia%2Bmoney%20%281%29.pdf |
| _version_ | 1848835169895579648 |
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| author | Puah, Chin-Hong Muzafar Shah, Habibullah Lau, Evan Shazali, Abu Mansor |
| author_facet | Puah, Chin-Hong Muzafar Shah, Habibullah Lau, Evan Shazali, Abu Mansor |
| author_sort | Puah, Chin-Hong |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | This study re-examines the long-run neutrality (LRN) of money on real output in Malaysia using quarterly Divisia money data from 1981:1 to 2004:4 based on Fisher and Seater’s (1993) nonstructural reduced form bivariate ARIMA model. Special attention has been given in identifying the number of unit root and cointegrating vector, as a meaningful LRN test is critically depends on such properties. Empirical results indicate that LRN is deviated from Malaysian economy when Divisia money is used. In particular, Divisia monetary expansion seems to have long-run positive effect on real output in Malaysia. |
| first_indexed | 2025-11-15T06:03:36Z |
| format | Working Paper |
| id | unimas-3244 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:03:36Z |
| publishDate | 2011 |
| publisher | Universiti Malaysia Sarawak, (UNIMAS) |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-32442020-08-25T08:15:02Z http://ir.unimas.my/id/eprint/3244/ Testing Long-Run Monetary Neutrality in Malaysia: Revisiting Divisia Money Puah, Chin-Hong Muzafar Shah, Habibullah Lau, Evan Shazali, Abu Mansor HB Economic Theory HG Finance This study re-examines the long-run neutrality (LRN) of money on real output in Malaysia using quarterly Divisia money data from 1981:1 to 2004:4 based on Fisher and Seater’s (1993) nonstructural reduced form bivariate ARIMA model. Special attention has been given in identifying the number of unit root and cointegrating vector, as a meaningful LRN test is critically depends on such properties. Empirical results indicate that LRN is deviated from Malaysian economy when Divisia money is used. In particular, Divisia monetary expansion seems to have long-run positive effect on real output in Malaysia. Universiti Malaysia Sarawak, (UNIMAS) 2011 Working Paper NonPeerReviewed text en http://ir.unimas.my/id/eprint/3244/1/Testing%2Blong-run%2Bmonetary%2Bneutrality%2Bin%2BMalaysia-Revisiting%2Bdivisia%2Bmoney%20%281%29.pdf Puah, Chin-Hong and Muzafar Shah, Habibullah and Lau, Evan and Shazali, Abu Mansor (2011) Testing Long-Run Monetary Neutrality in Malaysia: Revisiting Divisia Money. [Working Paper] |
| spellingShingle | HB Economic Theory HG Finance Puah, Chin-Hong Muzafar Shah, Habibullah Lau, Evan Shazali, Abu Mansor Testing Long-Run Monetary Neutrality in Malaysia: Revisiting Divisia Money |
| title | Testing Long-Run Monetary Neutrality in Malaysia: Revisiting Divisia Money |
| title_full | Testing Long-Run Monetary Neutrality in Malaysia: Revisiting Divisia Money |
| title_fullStr | Testing Long-Run Monetary Neutrality in Malaysia: Revisiting Divisia Money |
| title_full_unstemmed | Testing Long-Run Monetary Neutrality in Malaysia: Revisiting Divisia Money |
| title_short | Testing Long-Run Monetary Neutrality in Malaysia: Revisiting Divisia Money |
| title_sort | testing long-run monetary neutrality in malaysia: revisiting divisia money |
| topic | HB Economic Theory HG Finance |
| url | http://ir.unimas.my/id/eprint/3244/ http://ir.unimas.my/id/eprint/3244/1/Testing%2Blong-run%2Bmonetary%2Bneutrality%2Bin%2BMalaysia-Revisiting%2Bdivisia%2Bmoney%20%281%29.pdf |