Real currency balances and production in lesser developed countrie

This dissertation examines the role of real domestic monetary and reserve balances of twenty-three lesser developed countries in the context of the production function. Three alternative specifications of the production technology are utilized: the Cobb-Douglas, the Constant Elasticity of Substitution and the Box-Cox. The factor share coefficients are estimated for the individual countries and for groups of countries based upon their International Monetary Fund geographic groupings.;The geographic fixed effects models produced estimates for the factor share coefficients which were consistent with what previous studies of developed countries had found. The monetary variables had a greater influence in the more developed countries rather than the least developed. The production technology which gave the best results was the four factor Cobb-Douglas model.