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This paper presents distributions of error correction tests for cointegration. The authors offer cumulative distribution functions, densities, and finite sample critical values for the single-equation error correction statistic for testing cointegration. They conduct Monte Carlo simulations and emphasize simple dependencies of the statistic's quantities on the number of variables in the error correction model, the choice of deterministic components, and the estimation sample size. This working paper is available at the US Federal Reserve Board. You can access this site by going to www.federalreserve.gov/pubs/workingpapers.htm.

This paper reviews the economic theory of money demand and defines and describes the data series. The authors emphasize the connection of empirical modeling, econometric methodology, and conceptual issues when evaluating econometric models over additional observations. The authors extend the models to include two decades of new data and clarify the concept of parameter reliability. Lengthening the sample expands the number of alternative measures of both credit derestrictions and opportunity cost of holding money. This working paper can be found at the US Federal Reserve Board's International Finance Discussion Papers. You can access this by going to

This paper develops a constant, data-coherent, error correction model for broad money demand (M3) in Greece. By giving a better understanding of the effects of monetary policy in Greece, this model contributes to portfolio consequences of financial innovation in general. The broad monetary aggregate M3 was targeted until recently, and current monetary policies still use such aggregates as guidelines. The estimated model is remarkably stable, in spite of large fluctuations in the inflation rate, introduction to new financial instruments, and the liberalization of the financial system. The dynamics of money demand are important with price and income flexibilities being small in the short run. This working paper can be found at the US Federal Reserve Board's International Finance Discussion Papers. You can access this by going to