Swiss Journal of Economics and Statistics

, Volume 148, Issue 3, pp 409–438 | Cite as

Household money demand: The euro area case

Open Access


In this paper we analyse household holdings of the broad monetary aggregate M3 in the euro area from 1991 until 2010. We develop a nominal model with satisfactory economic and statistical properties. The main determinants are a transactions variable, wealth considerations, opportunity costs and uncertainty. The model is robust to different samples considered and a multitude of mis-specification tests. The exercise also provides insights that go beyond the portfolio allocation decision of households. According to our analysis, it is quite apparent that in equilibrium, households jointly determine consumption and broad money holdings both influenced by wealth as well as interest rates.


E41 C32 D12 


money demand cointegrated VARs households 


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Copyright information

© Swiss Society of Economics and Statistics 2012

Authors and Affiliations

  1. 1.University of Applied Sciences Weiden (Germany) and WSB Poznan (Poland)WeidenGermany
  2. 2.European Central BankDirectorate General EconomicsFrankfurt am MainGermany

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