Managing intraday overdrafts on Fedwire: An empirical analysis of recent developments

In this dissertation, structural changes in demand for overdrafts on Fedwire are examined since the imposition of fees in April 1994. Initial results confirmed the existence of a structural break and showed that the long- and short-run impacts of all variables had undergone a major change since the imposition of fees. However, on closer examination, the demand for overdrafts appears to be stable. This result is contingent on the use of sweep adjusted reserves instead of the commercial banks' end-of-the-day reserves.