We show that estimates of the elasticity if demand for money in the United States depend crucially on which of the three minima of the residual sum of squares is selected by the Cochrane-Orcutt procedure applied to a model which contains a lagged endogenous variable. The model constitutes the...

This paper derives one-month ahead forecasts of the money (M I) multiplier using the Multi-State Kalman Filter and Box-Jenkins ARIMA methods. A comparison of the forecasts far the period 1980-82 reveals that the Multi-State Kalman Filter procedure was generally superior to the ARIMA procedure In...