The determinants of the behaviour of the income velocity of money in Portugal 1...

• Autor(es): Nunes, Ana Bela ; St. Aubyn, Miguel ; Valério, Nuno ; Sousa, Rita Martins de
• Data: 2011
• Identificador Persistente: http://hdl.handle.net/10400.5/2872
• Origem: Repositório da UTL
• Assunto(s): Velocity of money; Portugal; Cointegration; Institutional determinants
• Tipo de Documento: Outro
• Idioma: Inglês

Descrição

This paper performs a long-run time series analysis of the behaviour of the income velocity of money in Portugal 1891-1998, and assesses the importance of both macroeconomic and institutional factors in shaping its path. We look for particularities of the Portuguese case in the international context. By means of a cointegrated vector autoregression, we find that institutional variables matter. Moreover, regression analysis shows that the general U-shaped pattern is displayed with the inflection point located in 1973, in line with the Spanish case.