Model
Digital Document
Publisher
Florida Atlantic University
Description
This thesis theoretically and empirically analyzes the determinants of Eurodollar
expansion observed in recent years. The Euro-dollar market is first
described in terms of its origin, development, geographical distribution and
institutional structure and regulation. The size, sources and uses of the market
are also illustrated. Alternative views and theories explaining Euro-dollar growth
are discussed in detail. A single stock adjustment model is first used to obtain the
determinants of Euro-dollar interest rates. Reduced form equations are utilized
to determine the factors for the equilibrium quantity of Euro-dollar deposits and
equilibrium Euro-dollar interest rate. Finally, the proportion of Euro-dollar
growth attributed to a multiplier expansion process as opposed to primary deposits
is empirically estimated for the time period 1973 - 1981. Almon and Koyck lag
structures are utilized to calculate the multiplier process associated with Eurodollar
expansion during this period.
expansion observed in recent years. The Euro-dollar market is first
described in terms of its origin, development, geographical distribution and
institutional structure and regulation. The size, sources and uses of the market
are also illustrated. Alternative views and theories explaining Euro-dollar growth
are discussed in detail. A single stock adjustment model is first used to obtain the
determinants of Euro-dollar interest rates. Reduced form equations are utilized
to determine the factors for the equilibrium quantity of Euro-dollar deposits and
equilibrium Euro-dollar interest rate. Finally, the proportion of Euro-dollar
growth attributed to a multiplier expansion process as opposed to primary deposits
is empirically estimated for the time period 1973 - 1981. Almon and Koyck lag
structures are utilized to calculate the multiplier process associated with Eurodollar
expansion during this period.
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