This paper develops a cross-sectional neural network for municipal bond yields, filling a need to extrapolate yields on these illiquid assets. Using this neural network, counterfactual municipal bond yields are generated for all states such that the only difference in the bond issues is the year...

We show that the optimal inflation target imposed on a discretionary central bank varies with the extent of fiscal decentralization. Our analysis compares two fiscal regimes for local government bond management: the partially decentralized (PD) regime where the central government determines the...