A Modified Baumol Approach-Optimal Withdrawal and Holding of Cash Liquid Assets

<p>Baumol developed an equation for the transaction demand for money. It is affected positively by cost per withdrawal and transaction value, and negatively by the interest loss from holding cash.</p><p>Our objective is to modify the Baumol equation by including another factor. The demand for money is also affected by the customer concern that holding a more available liquid asset encourages more spontaneous purchases with resulting losses in their real value. We develop a new theoretical model by adding to the original Baumol cash demand equation another demand for a deposit which has positive yield and is less liquid. Holding this deposit restrains some of the spontaneous purchases. This modified Baumol equation leads to the following new results: Customers withdraw cash more often; maintain, on average, a smaller cash balance and larger amount of less liquid assets; and reduce their spontaneous and “nonrational” purchases.</p>

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IMPACT OF REDENOMINATION ON PRICE, VOLUME, AND VALUE OF TRANSACTION: AN EXPERIMENTAL ECONOMIC APPRAOCH

Buletin Ekonomi Moneter dan Perbankan ◽

10.21098/bemp.v19i2.630 ◽

2016 ◽

Vol 19 (2) ◽

pp. 207-238 ◽

Cited By ~ 1

Author(s):

Danti Astrini ◽

Bambang Juanda ◽

Noer Azam Achsani

Keyword(s):

Economic Growth ◽

High Growth ◽

Transaction Prices ◽

Experimental Economic ◽

Before And After ◽

High Inflation ◽

Real Value ◽

Transaction Value ◽

The Impact ◽

Zero Number

Redenomination is a simplification of nominal value of currency by reducing digit (zero number) without reducing the real value of the currency. This paper provide an overview of the impact of redenomination to changes in transaction prices, transaction value and number of transactions using experimental methods. The results showed that the most substantial price reduction on the elastic goods can occur in conditions of low economic growth and high inflation. Price reductions also occur in conditions of high economic growth and low inflation. Based on results, there is no change between before and after redenomination on the number of transactions. So redenomination would not change the number of transactions in elastic goods. Conditions which can change the value of the transaction is low growth and high growth in high inflation condition. Conditions of high inflation and low growth will decrease the value of the transaction while the condition of high inflation with high growth will increase the value of the transaction.

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ANALYZING THE INFLUENCE OF INTEREST RATES ON MONEY DEMAND ACCORDING TO KEYNESIAN THEORY

Management and Sustainable Development Journal ◽

10.46229/msdj.v1i1.99 ◽

2019 ◽

Vol 1 (1) ◽

pp. 38-47

Author(s):

Aloysius Hari Kristianto

Keyword(s):

Interest Rates ◽

Money Demand ◽

Statistical Tests ◽

Linear Constraint ◽

Least Square ◽

Cash Balance ◽

Demand For Money ◽

Ordinary Least Square ◽

Keynesian Theory ◽

Velocity Of Money

The purpose of this research is to analyze the factors that influence money demand which are characterized by the amount of money currency (M1) in Indonesia, one of which is interest rates. The model of observation analysis used in this study is OLS (Ordinary Least Square), as a whole the tests performed are by linear constraint tests, statistical tests and classic assumption tests. In this model, the variable domestic interest rates in Indonesia are used as explanatory components. From these variables examined whether it influences the demand for money (the velocity of money) M1 or not.The results obtained from this study are that domestic interest rates have a negative and significant influence on the demand for money in Indonesia, these results are consistent with Keynesian theory, that interest rates increase, the demand for money for the cash balance will decrease.

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GROSS INCOME MULTIPLIER AS A FAIRNESS INDICATOR OF TRANSACTION VALUE ON TRANSFER OF RIGHTS ON LAND AND BUILDING IN SOUTH TANGERANG

PLANNING MALAYSIA JOURNAL ◽

10.21837/pm.v19i17.1013 ◽

2021 ◽

Vol 19 (17) ◽

Author(s):

Nur Hendrastuti

Keyword(s):

Income Tax ◽

Market Price ◽

Tax Revenue ◽

Monthly Report ◽

Directorate General ◽

Income Multiplier ◽

Real Value ◽

Gross Income ◽

The Government ◽

Transaction Value

As the government of Indonesia targets income tax to contribute 50,1% of the overall tax revenue target in Indonesia, the Directorate General of Taxes (DGT) is compelled to maximize the excavation of tax potential. Among others, excavation of income tax potential may apply for income tax upon the transfer of rights on land and/or building. For this final income tax, tax extraction is performed by evaluating the transfer transaction value stated in the Land Deed Officer Monthly Report which should be based on the value received or obtained by the seller based on market price. Unfortunately, there is no means to ensure that the value stated by taxpayer is the actual transaction value. Also, since data on property in Indonesia is not publicly available, the real value of the transfer remains elusive. Therefore, Tax Office requires a method or technique to determine whether the stated value is a reasonable and compliant one. This research aims to examine the feasibility of Gross Income Multiplier to determine the fairness indication of transaction value stated by the taxpayer in the transfer of rights on land and/or building. By understanding the fairness of the stated value as reported in the Land Deed Officer monthly report, DGT is expected to accurately determine the fair transaction value.

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A theoretical model for understanding dentists' behavior in treating patients with AIDS

Journal of Dental Education ◽

10.1002/j.0022-0337.1991.55.11.tb02589.x ◽

1991 ◽

Vol 55 (11) ◽

pp. 708-716 ◽

Cited By ~ 1

Author(s):

MS Chen

Keyword(s):

Theoretical Model

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A Model for Analyzing Suicide Prevention

Crisis ◽

10.1027//0227-5910.21.2.80 ◽

2000 ◽

Vol 21 (2) ◽

pp. 80-89 ◽

Cited By ~ 3

Author(s):

Maila Upanne

Keyword(s):

Risk Factors ◽

Theoretical Model ◽

Protective Factors ◽

Suicide Prevention ◽

Suicide Risk ◽

Practical Work ◽

Individual Risk ◽

Self Assessment ◽

Prevention Project ◽

Individual Risk Factors

This study monitored the evolution of psychologists' (n = 31) conceptions of suicide prevention over the 9-year course of the National Suicide Prevention Project in Finland and assessed the feasibility of the theoretical model for analyzing suicide prevention developed in earlier studies [ Upanne, 1999a , b ]. The study was formulated as a retrospective self-assessment where participants compared their earlier descriptions of suicide prevention with their current views. The changes in conceptions were analyzed and interpreted using both the model and the explanations given by the subjects themselves. The analysis proved the model to be a useful framework for revealing the essential features of prevention. The results showed that the freely-formulated ideas on prevention were more comprehensive than those evolved in practical work. Compared to the earlier findings, the conceptions among the group had shifted toward emphasizing a curative approach and the significance of individual risk factors. In particular, greater priority was focused on the acute suicide risk phase as a preventive target. Nonetheless, the overall structure of prevention ideology remained comprehensive and multifactorial, stressing multistage influencing. Promotive aims (protective factors) also remained part of the prevention paradigm. Practical working experiences enhanced the psychologists' sense of the difficulties of suicide prevention as well as their criticism and feeling of powerlessness.

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