01487pab a2200169 454500 180718b2001 xxu||||| |||| 00| 0 eng d Acharya, Debashish Simple sum vs divisia monetary aggregates: an empirical evaluation 2001 p.317-26 27 Jan This paper seeks to establish the superiority of the Divisia monetary aggregates over their simple sum counterparts in India. The aggregates are constructed over weakly separable groups obtained from a non-parametrio test of separability considering four assets, viz, (i) currency with the public, (ii) net demand deposits with the banks, (iii) net time deposits with the banks and (iv) post office savings deposits. The analysis covers two different samples - one annual (1970-1996) and the other monthly (1985:04-1996:09). The comparative performance of the divisia aggregates in relation to the simple sum aggregates is evaluated with the help of three tests, viz, money demand stability, information content and Davidson-Mackinnon J-tests. The results of the study show that the Divisia aggregates have an edge over their simple sum counterparts. Further, the results of an extended analysis covering a new asset, viz, the certificate of deposit, also exhibit a similar trend for the monthly sample period: 1994:06-1996:07. - Reproduced Monetary policy Kamaiah, Bandi Economic and Political Weekly 47691 47691 47691 0 0 0 0 IIPA IIPA 2018-07-19 Volume no: 36, Issue no: 4 AR48119 2018-07-19 2018-07-19 AR