We differ from other researchers in this area in using the ARIMA model to take expected capital gains into account when constructing rental price series for durable goods.
The services of money and money substitutes, along with the services of consumption goods (durable and non durable) and leisure are assumed to enter as arguments in the representative household's utility function.
The theoretical part of the thesis consists of applying the tools of modern utility theory to the particular problem of the demand for money.
The major part of the thes is cons is ts of apply ing the model to annual Canadian data fo r the per iod 1947-1974.
A substant ia l por t ion o f the empir ica l cont r ibu t ion is the const ruct ion of data s e r i e s cons is ten t with the t h e o r e t i c a l framework o f the model.
The estimated models were found generally to be consistent with the underlying theory, and also provided some useful information.
Money has an expenditure elasticity less than one, while near money is a luxury good.) Donal John Donovan In present ing t h i s thes is in p a r t i a l fu l f i lment o f the requirements for an advanced degree at the Un ivers i ty of B r i t i s h Columbia, I agree that the L ibrary sha l l make it f ree ly ava i l ab le for reference and study.I fur ther agree that permission for extensive copying of th is thes is for scho la r ly purposes may be granted by the Head of my Department or by h is representa t ives .There i s no evidence o f s u b s t i t u t a b i l i t y between aggregate money and aggregate near money; however, some s u b s t i t u t a b i l i t y i s reported between chartered bank personal savings d e p o s i t s , and t r u s t and loan company savings depos i ts . Conclusions 42 Footnotes 45 Chapter 3 THE DEMAND FOR MONEY WITHIN A GENERALISED UTILITY FRAMEWORK A. E l a s t i c i t i e s and Tests of U t i l i t y Maximising Behaviour 92 Footnotes 97 Chapter 5 DATA: METHODOLOGY AND SOURCES A. In p a r t i c u l a r , I would l i k e to thank the members o f my d i s s e r t a t i o n committee, c o n s i s t i n g o f Professors D. I would a lso l i k e to acknowledge the comments o f Professors Peter C h i n l o y , Robert Evans, John H e l l i w e l l , Ronald Shearer and Kenneth White. Despite the volume of research undertaken, two fundamental c r i t i c i s m s can be made of the l i t e r a t u r e as a whole.( i i i ) TABLE OF CONTENTS ABSTRACT ( i ) TABLE OF CONTENTS ( i i i ) LIST OF TABLES. The Choice of an Aggregate Index Number Formula 101 B. Among my fe l low graduate s tudents , Thomas Bennet t , Mohammed Khaled and Theodore Panayotou deserve spec ia l mention f o r put t ing up with a constant stream of d iscuss ion and arguments. F i r s t , very r a r e l y has an attempt been made to der ive the demand f o r money funct ion to be estimated from a choice theore t ic model.The development and solution of the model provides a clear basis for interpreting the demand equations used in estimation, and also makes explicit various assumptions implicit in previous empirical models in this area.In particular, derivation of the rental price of money and money substitutes serves to clarify the role of expectations and the relationship between the rental prices of money and goods within the direct utility model.It i s understood that copying or pub l ica t ion of th is thes is for f inanc ia l gain sha l l not be allowed without my wri t ten permission.Department of Economics The Univers i ty of B r i t i s h Columbia 2075 Wesbrook Place Vancouver, Canada V6T 1W5 D a t e A p r i l 22, 1977 CONSUMPTION , LEISURE, AND THE DEMAND FOR MONEY AND MONEY SUBSTITUTES Research Superv isor : Professor David E.We d i f f e r from other researchers in t h i s area in using the ARIMA model to take expected cap i ta l gains in to account when const ruc t ing rental p r i c e s e r i e s f o r durable goods.i i • Three d i f f e r e n t groups of models are examined e m p i r i c a l l y .