This paper presents new evidence on the effect of state fiscal institutions, particularly balanced-budget rules and restrictions on state debt issuance, on the yields on state general obligation bonds. We analyze information from the Chubb Relative Value Survey, which contains relative...

The fiscal and financial reforms carried out in Mexico in 2000 have encouraged a widespread presence of rating agencies and have allowed several States and Municipalities to raise funds through bond offerings in the capital market. Any local government in Mexico intending to access credit and...

The fiscal and financial reforms carried out in Mexico in 2000 have encouraged a widespread presence of rating agencies and have allowed several States and Municipalities to raise funds through bond offerings in the capital market. Any local government in Mexico intending to access credit and...

This paper provides estimates of the supply elasticity of municipal debt and explores heterogeneity across different types of local governments by exploiting a discrete jump in interest rates created by the Tax Reform Act (TRA) of 1986. In order to qualify for bank financing of tax-exempt debt,...

Conventional wisdom argues that competitive bidding, compared to negotiated sale, can reduce the interest cost of municipal bonds in the primary market. Studies correcting for self-selection bias have mixed findings. However, these studies are subject to some potential methodological issues....