A new model based on ray tracing is developed to estimate power spectral properties in laser Doppler velocimetry of retinal vessels and to predict the effects of laser beam size and eccentricity as well as absorption of laser light by oxygenated and reduced hemoglobin. There is described the model and show that it correctly converges to the traditional rectangular shape of the Doppler shift power spectrum, given the same assumptions, and that reduced beam size and eccentric alignment cause marked alterations in this shape. The changes in the detected total power of the Doppler-shifted light due to light scattering and absorption by blood can also be quantified with this model and may be used to determine the oxygen saturation in retinal arteries and veins. The potential of this approach is that it uses direct measurements of Doppler signals originating only from moving red blood cells. The invention opens new avenues for retinal vessel oximetry.