This paper applies Varian's(1982,1983) non-parametric tests to obtain weakly separable monetary assets for aggregation. Using annual data (1970-1996) it was found that the official monetary aggregates M2, M3 and M4 are theoretically admissible. Some new separable groups were also obtained in the...

A very large number of empirical studies have been conducted in many countries to evaluate the determinants and stability of the demand for money. The analysis of this paper deals with error correction, causality and stability issues in money demand estimation. In this study various money supply...