Cover, James Peery; Hooks, Donald L - In: The Review of Economics and Statistics 75 (1993) 3, pp. 520-23
Transactions (and precautionary) theories of money demand imply that the more unequal the distribution of income (or transactions), the lower the demand for money. This paper presents evidence that contradicts this implication of transactions theories of money demand. Using annual U.S. data, it...