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Table 3 EC model estimates M1, real income, price level, interest rates, and number of banks, Switzerland, 1851–1906

From: Money demand under free banking: Switzerland 1851–1906

∆x t  = (∆m t , ∆p t , ∆y t , ∆rs t , ∆bb t , ∆nb t , ∆rm t )

\( {\Delta x}_{it}={\gamma}_{i1}{u}_{1t-1}+{\gamma}_{i2}{u}_{2t-1}+{\gamma}_{i3}{u}_{3t-1}+{\gamma}_{i4}{u}_{4t-1}+\sum \limits_{j=1}^7{c}_{ij}{\Delta x}_{jt-1}+{\varepsilon}_{it},\kern1.75em i=1,2,\dots 7 \)

Equation

γ i1

γ i2

γ i3

γ i4

Adj R2

se

∆m t

− 0.259** (0.108)

0.0551 (0.0327)

− 0.105** (0.046)

− 4.017 (6.659)

0.0700

3.542

∆p t

0.471** (0.193)

− 0.336*** (0.0795)

− 0.129 (0.0961)

− 30.186** (15.016)

0.348

6.881

∆y t

− 0.226 (0.243)

0.355*** (0.103)

0.0931 (0.114)

23.565 (18.960)

0.271

7.983

∆rs t

0.000326 (0.00190)

− 0.001295 (0.000804)

0.00011 (0.000905)

0.390** (0.132)

0.291

0.0601

∆bb t

0.150 (0.165)

− 0.0914* (0.0480)

− 0.0298 (0.0585)

− 22.846** (9.587)

0.486

3.650

∆nb t

− 0.00174 (0.0525)

0.00682 (0.0278)

− 0.0251 (0.0248)

− 2.943 (4.188)

0.401

1.586

∆rm t

− 0.0000413 (0.00277)

− 0.00325*** (0.00119)

0.000299* (0.00155

− 0.376* (0.231)

0.210

0.0871

  1. Note: Standard errors are given in parentheses
  2. *, **,*** indicates significance at the 10, 5 and 1% level, respectively