Price pressure in the government bond market

@article{Greenwood2010PricePI,
  title={Price pressure in the government bond market},
  author={R. Greenwood and Dimitri Vayanos},
  journal={LSE Research Online Documents on Economics},
  year={2010}
}
What determines the term structure of interest rates? Standard economic theory links the interest rate for maturity T to the willingness of a representative agent to substitute consumption between times 0 and T. The standard model contrasts sharply with a more informal view based on investors’ preferred habitat, proposed by John Culbertson (1957) and Franco Modigliani and Richard Sutch (1966). According to the preferred-habitat view, there are investor clienteles with preferences for specific… Expand
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