No abstract

In this paper we document and examine unusual fluctuations in the G-Fund, which is one of five funds available in a voluntary federal government employee retirement savings vehicle called the Thrift Savings Plan. The G-Fund is managed as "internally" held debt by the United States Department of Treasury. Our examination highlights two obscure facts about the G-Fund: 1) The fund is exclusively composed of one-day notes that Treasury redeems and reissues every business day. The daily turnover of the G-Fund results in about $55 trillion in debt reissuance annually; and 2) whenever the federal government is constrained by a debt ceiling, the G-Fund balance drops dramatically and typically does not return to pre-constraint balance levels until the debt ceiling is either expanded or suspended. We document these patterns and ask whether the G-Fund is managed in a way the represents the best interests of the fund contributors.

Urban blight is a complex problem that has been challenging for cities in the United States “Rust Belt” region for many decades. However, in the wake of the real estate and financial crisis, it is also a growing challenge for urban communities in many states such as California, Arizona, Nevada, and Texas. Detroit was particularly hit hard, where more than 40,000 blighted structures were identified in 2014. To curb blight, the city mobilized the most extensive demolition program in the country. Funded through the Federal Hardest Hit Fund (HHF), the Detroit Demolition Program began in 2014 and has demolished more than 20,800 properties at the cost of over $250 million. Furthermore, during 2009–2015, the city demolished 11,400 structures with hazardous materials such as asbestos. In this article, we assess the impacts of demolitions on the value of neighboring properties using a Repeat Sales (RS) regression approach. Specifically, we use housing sales price information from 2009 through 2019 to construct real estate price indices. We also rely on information from the 2009 Detroit Residential Survey to differentiate by dilapidation and blight levels before the start of the program. On average, blight removal through the demolition program does not appear to have been capitalized into the residential property prices. However, when considering the effect of ex‐ante program property characteristics, we find a modest positive effect of demolitions on property prices in areas with a low level of blight before the demolitions. Given the magnitude of the observed effect and the high costs associated with the demolition program, our results highlight the need for further research on alternative blight removal strategies that might provide a more cost‐effective solution to this urban challenge.

This article examines the G-Fund, which is one of the five funds in the federal government employee retirement Thrift Savings Plan. The G-Fund is held as internal debt by the U.S. Department of Treasury. Our examination shows that the fund balance is exclusively composed of 1-day notes that are redeemed/reissued every business day, generating $55 trillion in annual debt reissuance. We also show that the fund balance drops substantially as resources are transferred to the general fund when the government is constrained by a debt ceiling and returns to pre-constraint levels when the ceiling is expanded/suspended.