ABSTRACT
The formulation of a disaggregated structural model of the US Government securities market provides a foundation in which to analyze one important area of financial market activity. Certain structural shifts concerning reform and behavioral changes of individual investor groups have implications that become apparent in a disaggregated structural model. This chapter focuses on the development of a structural model of the US Government securities market; i.e., the specification and estimation of the demands for disaggregated maturity classes of US Government securities by the individual investor groups participating in the market. The categories of investors participating in the US Government securities market are given, with respect to total Treasury securities outstanding as of yearend 1975. Apart from commercial banks, households, and state and local government general funds, the individual investor groups typically do not hold large amounts of US Government securities. The chapter also presents an overview of the key concepts discussed in this book.
