Differential impact of monetary policy: a sectoral approach

The proposition tested in the thesis is that actual money growth is not systematically related to output growth of selected manufacturing sectors. Given that money growth is found to be non-neutral, two further tests are undertaken. First, I test the rational expectations hypothesis that only unex...

Full description

Bibliographic Details
Main Author: Chessen, James Hartley
Other Authors: Economics
Format: Others
Language:en_US
Published: Virginia Polytechnic Institute and State University 2017
Subjects:
Online Access:http://hdl.handle.net/10919/74813
id ndltd-VTETD-oai-vtechworks.lib.vt.edu-10919-74813
record_format oai_dc
spelling ndltd-VTETD-oai-vtechworks.lib.vt.edu-10919-748132020-09-29T05:31:23Z Differential impact of monetary policy: a sectoral approach Chessen, James Hartley Economics LD5655.V856 1981.C447 Money supply -- Mathematical models The proposition tested in the thesis is that actual money growth is not systematically related to output growth of selected manufacturing sectors. Given that money growth is found to be non-neutral, two further tests are undertaken. First, I test the rational expectations hypothesis that only unexpected monetary changes affect output growth against the Phillips' type stabilization hypothesis that both expected and unexpected monetary growth affect output growth. Further, I examine the arguments that under different conditions the degree of association between output growth and money growth (given statistically by the magnitude of the coefficient on money growth) is not constant. The conditions tested relate to the level of capacity utilization and the phase of the business cycle. Secondly, I test for differential sector to aggregate manufacturing output response. Non-neutrality does not imply differentiality since money growth can be significantly related to individual manufacturing sectors in an identical way. Differential effects might be argued to exist because the different structure of each sector imposes different restrictions on decisions and actions that can be undertaken. If differential effects are found to exist, a test of specific sector characteristics, which may be functionally related to the differential association, will be undertaken. Money growth was found to be significantly related to individual sector output growth in equations unadjusted for seasonal variation. No association was found in seasonally adjusted estimations indicating that money growth is related to the seasonal amplitude and not the underlying non-seasonal structure. This supports the neutrality proposition. Expected and unexpected money growth, in the seasonally unadjusted estimations, were found to be statistically significant in nine of the twelve industries examined. Further, these associations are strongly related to the level of capacity utilization and the phase of the business cycle. The test of differential impact did not support the hypothesis that the incidence of money growth was unequal across sectors. Therefore, no further investigation was necessary. Ph. D. 2017-01-30T21:24:58Z 2017-01-30T21:24:58Z 1981 Dissertation Text http://hdl.handle.net/10919/74813 en_US OCLC# 8010403 In Copyright http://rightsstatements.org/vocab/InC/1.0/ xii, 301, [2] leaves application/pdf application/pdf Virginia Polytechnic Institute and State University
collection NDLTD
language en_US
format Others
sources NDLTD
topic LD5655.V856 1981.C447
Money supply -- Mathematical models
spellingShingle LD5655.V856 1981.C447
Money supply -- Mathematical models
Chessen, James Hartley
Differential impact of monetary policy: a sectoral approach
description The proposition tested in the thesis is that actual money growth is not systematically related to output growth of selected manufacturing sectors. Given that money growth is found to be non-neutral, two further tests are undertaken. First, I test the rational expectations hypothesis that only unexpected monetary changes affect output growth against the Phillips' type stabilization hypothesis that both expected and unexpected monetary growth affect output growth. Further, I examine the arguments that under different conditions the degree of association between output growth and money growth (given statistically by the magnitude of the coefficient on money growth) is not constant. The conditions tested relate to the level of capacity utilization and the phase of the business cycle. Secondly, I test for differential sector to aggregate manufacturing output response. Non-neutrality does not imply differentiality since money growth can be significantly related to individual manufacturing sectors in an identical way. Differential effects might be argued to exist because the different structure of each sector imposes different restrictions on decisions and actions that can be undertaken. If differential effects are found to exist, a test of specific sector characteristics, which may be functionally related to the differential association, will be undertaken. Money growth was found to be significantly related to individual sector output growth in equations unadjusted for seasonal variation. No association was found in seasonally adjusted estimations indicating that money growth is related to the seasonal amplitude and not the underlying non-seasonal structure. This supports the neutrality proposition. Expected and unexpected money growth, in the seasonally unadjusted estimations, were found to be statistically significant in nine of the twelve industries examined. Further, these associations are strongly related to the level of capacity utilization and the phase of the business cycle. The test of differential impact did not support the hypothesis that the incidence of money growth was unequal across sectors. Therefore, no further investigation was necessary. === Ph. D.
author2 Economics
author_facet Economics
Chessen, James Hartley
author Chessen, James Hartley
author_sort Chessen, James Hartley
title Differential impact of monetary policy: a sectoral approach
title_short Differential impact of monetary policy: a sectoral approach
title_full Differential impact of monetary policy: a sectoral approach
title_fullStr Differential impact of monetary policy: a sectoral approach
title_full_unstemmed Differential impact of monetary policy: a sectoral approach
title_sort differential impact of monetary policy: a sectoral approach
publisher Virginia Polytechnic Institute and State University
publishDate 2017
url http://hdl.handle.net/10919/74813
work_keys_str_mv AT chessenjameshartley differentialimpactofmonetarypolicyasectoralapproach
_version_ 1719343466904813568