Determinants of Debt Concentration at the State Level

Greer, Robert O.; Denison, Dwight V.

doi:10.1111/pbaf.12118

Cited by 19 publications

(23 citation statements)

References 42 publications

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“…An important advantage of the TEL index over simple dichotomous measures of TELs typically used in extant research is that it takes into consideration the differences in TEL laws across states that determine TEL stringency. The TEL index has been used in several studies (see, among others, Greer and Denison ; Jimenez ,; Stallmann et al )…”

Section: Methodsmentioning

confidence: 99%

Fiscal Institutional Externalities: The Negative Effects of Local Tax and Expenditure Limits on Municipal Budgetary Solvency

Jimenez

2018

Public Budgeting & Finance

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This study explores the effects of state-imposed local tax and expenditure limits or TELs on the budgetary solvency of city governments in the US. Most local TELs were enacted in the late 1970s and early 1980s, and have remained largely unchanged in the last three to four decades. These quasi-permanent fiscal institutions do not take into account changes in voters' fiscal policy preferences across time or the possibility of external fiscal shocks that require flexibility in changing tax and spending policies. Without this flexibility, TELs can lead to poor financial management practices that negatively affect budgetary solvency. The empirical analysis produces strong evidence supporting this argument. Whether TELs are assumed to be exogenously or endogenously determined, the results of the econometric analysis, including various robustness tests, indicate that TELs weaken city budgetary solvency.

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Section: Methodsmentioning

confidence: 99%

Fiscal Institutional Externalities: The Negative Effects of Local Tax and Expenditure Limits on Municipal Budgetary Solvency

Jimenez

2018

Public Budgeting & Finance

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“…However, to finance the substantial capital costs, they often use tax-exempt municipal bonds. These are bonds that are issued by local governments for public purposes that allow the purchaser of the bond to exempt interest earned from federal and sometimes state income taxes (Greer & Denison, 2016;Johnson et al, 2014). These tax savings make municipal bonds an attractive investment to investors since the federal government indirectly subsidizes them.…”

Section: Local Governments and Municipal Bondsmentioning

confidence: 99%

“…To deal with the level of complexities of financing large capital projects, the municipal bond market has evolved over recent years to include several innovations that have gained more support, including the use of certificates of obligation (CO), private placement bonds, and green bonds. Over the years, there have been various rules and regulations designed to limit the amount of debt that local governments (including special districts such as water districts) can issue (Greer & Denison, 2016;. Conversely, local governments have developed new and innovative debt instruments that are exempt from those regulations.…”

Section: Local Governments and Municipal Bondsmentioning

confidence: 99%

A review of public water infrastructure financing in the United States

Greer

2020

WIREs Water

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The delivery of clean drinking water and the treatment of wastewater are critical public services, and in the United States, they are provided by a complex system of federal, state, and local governments. The process of water treatment and delivery requires significant investment in infrastructure both for initial capital requirements as well as the on‐going maintenance and operating costs. The quality of drinking water in the United States is, on average, relatively high, but according to the American Water Works Association, an estimated $1 trillion is necessary to maintain and expand service to meet demands over the next 25 years. The water infrastructure needs in the United States require both immediate attention and long‐term solutions, and the dollar cost is climbing rapidly. It remains unclear, however, where these funds will come from and how they will be allocated. The goal of this paper is to review the portfolio of financing options that exist for public entities responsible for the construction and maintenance of water infrastructure in the United States, including the municipal bond market, state revolving loan funds, federal grant and loan programs, public–private partnerships, and recent financing innovations. This article is categorized under: Engineering Water > Water, Health, and Sanitation Human Water > Value of Water Human Water > Water Governance

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“…Moreover, when credit dries up in the capital markets, a private placement may become the only viable option for some issuers seeking new debt. Finally, municipal governments may face restrictions from voters and taxpayers as well as from their states (e.g., Greer and Denison ; Kioko and Zhang ; Moldogaziev, Kioko, and Hildreth ). Subsequently, these noneconomic reasons add to the selectivity concerns for the method of sale in the municipal debt market.…”

Section: Literature Reviewmentioning

confidence: 99%

Private Placements and the Cost of Borrowing in the Municipal Debt Market

Moldogaziev¹,

Greer²,

Lee³

2019

Public Budgeting & Finance

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Private placements continue to be issued in the municipal debt market and remain a topic of interest for municipalities, investors, and regulators. Private placements are often sold without an underwriter to relatively sophisticated investors and are typically "buy-to-hold" transactions. Therefore, compared with traditional competitive or negotiated sales, there are fewer financial intermediaries and fewer regulatory disclosure requirements that accompany private placements. Savings on "flotation" costs can be substantial enough to make private placements a less costly method of debt offering. Conditional on selectivity in the method of sale and key market covariates, private placements offer lower arbitrage yields and issuance costs compared to both competitive and negotiated debt offerings.

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Determinants of Debt Concentration at the State Level

Cited by 19 publications

References 42 publications

Fiscal Institutional Externalities: The Negative Effects of Local Tax and Expenditure Limits on Municipal Budgetary Solvency

Fiscal Institutional Externalities: The Negative Effects of Local Tax and Expenditure Limits on Municipal Budgetary Solvency

A review of public water infrastructure financing in the United States

Private Placements and the Cost of Borrowing in the Municipal Debt Market

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