Journal of Economics and Finance

, Volume 23, Issue 1, pp 39–44 | Cite as

An error-correction model of the demand for equity mutual funds in the U.S. 1973–1994

  • Nelson C. Modeste
  • Muhammad Mustafa


The purpose of this paper is to estimate an error-correction model of the U.S. demand for equity mutual funds. Using annual data for the period 1973–1994, this study finds that changes in the demand for equity mutual funds have been significantly influenced by the changes in the rate of return on equity mutual funds and savings deposits, as well as by the growth in income over the long run.


Ordinary Little Square Mutual Fund Instrumental Variable Regression Constant Dollar Saving Deposit 
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Copyright information

© Springer 1999

Authors and Affiliations

  • Nelson C. Modeste
    • 1
  • Muhammad Mustafa
    • 1
  1. 1.Department of Agribusiness and EconomicsSouth Carolina State UniversityOrangeburg

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