Sweep programs and optimal monetary aggregation

Barry E. Jones, Donald H. Dutkowsky, Thomas Elger

Research output: Contribution to journalArticlepeer-review

35 Scopus citations


This paper examines the admissibility of monetary aggregate groupings for the US over 1993-2001, based upon weak separability. We investigate the impact of retail and commercial demand deposit sweep programs on the separability of monetary asset groupings. Weak separability is tested using the Swofford-Whitney and Fleissig-Whitney tests. We use Varian's measurement error adjustment procedure to eliminate violations of the Generalized Axiom of Revealed Preference (GARP). When funds from both retail and commercial demand deposit sweep programs are placed within checkable deposits, all groupings, narrow and broad, pass GARP and weak separability. For groupings based on conventional money measures, tests tend to favor broad aggregates.

Original languageEnglish (US)
Pages (from-to)483-508
Number of pages26
JournalJournal of Banking and Finance
Issue number2
StatePublished - Feb 2005


  • Commercial demand deposit sweep programs
  • GARP
  • Monetary aggregation
  • Non-parametric tests
  • Retail sweep programs
  • Weak separability

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


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