The current system of tax-exempt bond financing is inefficient and inequitable because a large portion of the federal subsidy provided by the tax exemption does not reach state and local governments and accrues instead to the wealthiest investors. In addition, the current system excludes large...

How responsive is the supply of tax-exempt bonds to state and local government borrowing costs? This question is critical to the effectiveness of current federal tax policies designed to stimulate investment in infrastructure and education. Would states borrow more if their cost of capital were...

Fixed rate municipal bonds are often sold with an optional redemption feature giving issuers the right to call the bonds prior to maturity. The application of no-arbitrage bond option models to help assess the value of these optional redemption features though not common has been increasing....