We examine the impact of population aging on municipal access to credit. A one standard deviation increase in a state's population age leads to a 23 basis point increase in municipal bond issue spread. Three mechanisms drive this effect: income tax revenue, healthcare liabilities, and pension...

Green municipal bonds are a growing segment of the US municipal bond market. As they face increasing demand, there have been questions about the performance of green muni bonds relative to their conventional counterparts. In this paper, we perform yield curve analysis on a selection of...

This paper examines mean and volatility spillovers between four green municipal bonds issued by the US states of California, Colorado, Columbia and Ohio, and the role played by the recent Covid-19 pandemic and the COP policy announcements respectively. Specifically, four-variate VAR-GARCH-BEKK...

We study the valuation of state-issued tax-exempt municipal bonds and find that there are significant convenience premia in their prices. These premia parallel those identified in Treasury markets. We find evidence that these premia are tax related. Specifically, the premia are related to...

Against the backdrop of COVID-19, we study how the interactions of mutual funds and dealers introduce fragility to the municipal bond market and carry lasting impacts. During the crisis, trading activities surge while dealers' liquidity provision plunges for mutual-fund-held bonds, leading to...

I examine how transparency and inter-dealer trading affects prices investors pay in municipal bond offerings. Real-time trade reporting for municipal bonds started January 31, 2005. The dispersion of purchase prices fell sharply at that time. There was little impact on average markups for most...

We analyze an extensive sample of tax-exempt and taxable municipal bonds to better understand how municipals behave without federal tax-exemption. We find taxable municipals are issued at higher yields in high state tax rate jurisdictions, are less likely to be issued in these areas, and more...

This paper examines the impact of the opioid epidemic on the financing costs of local governments. We find that a higher county-level drug overdose death rate raises offering yield spreads for local municipal bond issuers, while lowering their debt capacity. A causal interpretation is suggested...

We hand-collect new data on municipal bonds issued by all states and the largest 100 cities in the U.S. between 1920 and 2020 and study how the terms of municipal bond financing evolved over the last century. We document a striking decline of almost 50% in the maturity of these bonds. We analyze...

This paper shows that state tax policy significantly affects the transmission of asset purchase programs into municipal bond prices. I establish theoretically and empirically two parameters that determine prices in the cross section: the tax rates of in-state investors and the aggregate wealth...