ABSTRACT
This chapter provides a disaggregated structural model of the US Government securities market. The model is disaggregated both in terms of the individual investor groups participating in the US Government securities market, and different maturity classes of US Government securities. The demand side of the US Government securities market is disaggregated into ten investor categories. These consist of commercial banks, households, life insurance companies, mutual savings banks, nonfinancial corporate businesses, other insurance companies, private pension funds, savings and loan associations, state and local government general funds, and state and local government retirement funds. The individual asset demand equations are specified in terms of explicit short-run portfolio selection models. For the categories of investors exclusive of depository financial intermediaries, the approximation utilized in the development of the specification for asset demands is similar to those prevalent in the literature. The chapter also presents an overview of the key concepts discussed in this book.
