Portfolio Behaviour in a Flow of Funds Model for the Household Sector in India
在近乎理想需求系统框架下估计印度家庭部门的资金流量模型，研究货币需求及货币与其他金融资产间的替代效应，发现金融改革显著影响利率结构和家庭投资组合偏好。
We estimate a flow of funds model for the household sector in India, within the Almost Ideal Demand System (AIDS) framework, and examine the demand for money and the substitution effects between money and other financial assets. The restricted long-run model, obtained using cointegration techniques, provides stable equilibrium relationship between I(1) variables and broadly satisfies the axioms of rational choice in consumer demand theory. We find that financial sector reform exerts a significant impact on the interest rate structure and household portfolio preferences; specifically, there is strong substitutability among risk-free assets and a possible speculative effect in the stock market, while the exchange rate strongly influences the demand for money. These findings all have important policy implications.