Starting from a linear error correction model the stability and linearity of a German M1 money demand function are investigated, applying smooth transition regression techniques. Using seasonally unadjusted data from 1961 (1) to 1990 (2) it is found that the money demand equation is both linear...

Differences between informative upper and lower quantiles of the wage distribution have become standard measures of wage inequality. Such realized measures of inequality are based on the implicit assumption that the underlying quantiles are deterministic. In this study we relax this assumption...