Investigating stability and linearity of a German M1 money demand function
用平滑转换回归方法分析德国M1货币需求函数，发现1961-1990年数据下函数线性且稳定，但加入1990年货币统一后数据则出现结构不稳定，并提出了非线性模型。
Starting from a linear error correction model (ECM) the stability and linearity of a German M1 money demand function are investigated, applying smooth transition regression techniques. Using seasonally unadjusted quarterly data from 1961(1) to 1990(2) it is found that the money demand equation considered is both linear and stable. After extending the sampling period until 1995(4) a clear structural instability due to the monetary unification on 1 July 1990 is found and subsequently modelled. A non-linear specification for the extended period is presented and discussed. Copyright © 1999 John Wiley & Sons, Ltd.