Hendry, David F; Ericsson, Neil R - In: American Economic Review 81 (1991) 1, pp. 8-38
This paper evaluates an empirical model of U.K. money demand developed by Milton Friedman and Anna J. Schwartz in Monetary Trends in the United States and the United Kingdom. Testing reveals misspecification and, hence, the potential for an improved model. Using recursive procedures on their...