(Edited with Donald D. Hester) This monograph is one of three (Monographs 19, 20, and 21) that bring together nineteen essays on theoretical and empirical monetary economics written by recent Yale graduate students and staff members of the Cowles Foundation. Seven of these are based on doctoral dissertations approved by the Yale Economics Department, supervised by Cowles Foundation staff members and other members of the Department.
Monograph 20, Studies of Portfolio Behavior, is institutionally oriented. The six essays draw on the theoretical developments mentioned above and seek to apply them to the particular circumstances and objectives of various kinds of economic units: households, nonfinancial corporations, banks, and life insurance companies. It is our hope that the analytical tools contribute to the interpretation of the statistical data available on balance sheets and capital accounts.