Die steigenden Zinsen haben Auswirkungen auf die kommunalen Haushalte. Sie erhöhen die Kosten für Kredite und verteuern damit die Finanzierung notwendiger Investitionen in Infrastruktur und Transformation. Zwar dürfte der Großteil der Kommunen ausreichend Spielräume haben, um mit höheren...

Die steigenden Zinsen haben Auswirkungen auf die kommunalen Haushalte. Sie erhöhen die Kosten für Kredite und verteuern damit die Finanzierung notwendiger Investitionen in Infrastruktur und Transformation. Zwar dürfte der Großteil der Kommunen ausreichend Spielräume haben, um mit höheren...

This research paper presents and discusses the main results generated and obtained with the proprietary computer platform CIDIUS®, developed by the authors of this work, which aims to support the decision-making process of Portuguese mayors. Thus, keeping in mind the theoretical models and...

The Bolivian economy is gradually recovering from the pandemic-induced recession. La Paz Municipality primary balance has fluctuated near balance as this municipality managed to cushion the decline in hydrocarbon revenues and the pandemic. The DeMPA assessment for the Autonomous Municipal...

This paper explores which variables are more significant in municipal executive recommendation by citizens. We estimated the influence of public dimensions, such as municipe loyalty, municipe satisfaction, and municipe perceived value in municipal executive recommendation by citizens. Then, we...

Over 2010-2016, municipal debt in Germany crowded out private investment worth 1 percent of GDP. Forced to lend to municipalities by their statutes, local public banks compensated for declining municipal-debt yields by charging higher rates to firms in Germany's locally segmented credit markets....

This paper develops a cross-sectional neural network for municipal bond yields, filling a need to extrapolate yields on these illiquid assets. Using this neural network, counterfactual municipal bond yields are generated for all states such that the only difference in the bond issues is the year...

Calls for reforming the civil rights enforcement regime often focus on individual government officers. Recent years have brought demands to abolish qualified immunity—a defense that protects individual officers from liability so long as they did not violate clearly established law—and to end...

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...

We analyze the impact of $38 billion of corporate subsidies given by U.S. local governments on their borrowing costs. We find that winning counties experience a 13.6 bps increase in bond yield spread as compared to the losing counties. The increase in yields is higher (16 -- 21 bps) when the...

Municipalities provide infrastructure and essential services financed by taxes and debt. We develop a model of municipal capital structure, defined as the debt-to-investment ratio, that rests on two primary economic forces: the elasticity of the tax base with respect to taxes and services, and...

Chinese local governments have issued a large number of local government financing vehicle (LGFV) bonds since 1994 when the Budget Law was promulgated, where local governments were prohibited from raising debt on their own. Although LGFV bonds are implicitly backed by governments, there has been...

In March 2020, the COVID-19 pandemic caused severe financial stress for state and local municipalities. Municipalities' public health responses led to material increases in expenditures. At the same time, many municipalities faced revenue delays and declines due to extended tax deadlines and...

Saudi Arabia experience structural economic changes embodied by Vision 2030. One of the main aspects of this master plan is related to the financial markets and developing its instruments. This paper is devoted to developing new financial instrument called Municipality Sukuk (MuSk), and bring it...

Municipal (muni) bonds are an important source of funding for state and local governments. During the Covid-19 pandemic, muni debt markets became severely distressed. In response, the Federal Reserve established the Municipal Liquidity Facility (MLF). Meanwhile, Congress enacted extensive fiscal...

At the onset of the COVID-19 pandemic, state and local governments were among the sectors expected to experience the most severe distress. The combination of a sharply deteriorating revenue picture, a pressing need for additional expenditures, delays in the receipt of substantial taxes owed, and...

We estimate the option value of municipal liquidity by studying bond market activity and public sector hiring decisions when government budgets are severely distressed. Using a regression discontinuity (RD) design, we exploit lending eligibility population cutoffs introduced by the federal...

Using confidential loan-level data, we investigate the importance of bank loans in the debt structure of U.S. state and local governments. We show that most bank debt is closely substitutable with municipal bonds and that smaller, lower-income and less credit-worthy borrowers are more reliant on...

Über die vergangenen Jahre stellte sich der Status quo der Kommunalfinanzierung in Deutschland als recht stabil dar. Der Kommunalkredit ist dabei insbesondere für die Investitionen eine zentrale Säule der Finanzierung. Größere Veränderungen waren in den letzten Jahren sowohl auf der...

We find that mean municipal debt costs are greater following financial restatement disclosures. Comparisons of the relative use of municipal debt, and of the use of unsecured versus secured debt, corroborate that financial restatements increase the cost of municipal debt financing. Additional...

At the onset of the COVID-19 pandemic, state and local governments were among the sectors expected to experience the most severe distress. The combination of a sharply deteriorating revenue picture, a pressing need for additional expenditures, delays in the receipt of substantial taxes owed, and...

Municipal (muni) bonds are an important source of funding for state and local governments. During the Covid-19 pandemic, muni debt markets became severely distressed. In response, the Federal Reserve established the Municipal Liquidity Facility (MLF). Meanwhile, Congress enacted extensive fiscal...

We study the approximately 34% of local municipal bond issues that are unrated. Results show that issuers are less likely to obtain ratings for smaller issues, negotiated offerings, and bonds with high proxies for risk such as coming from areas with low property values and personal income. Using...

Almost 95% of long-term municipal bonds have callable features, and despite low interest rates, we find that a substantial fraction of local governments exercise these options with significant delays. Using data from 2001 to 2018, we estimate that U.S. municipals lost over $31 billion from...

The alarming rise in drinking water pollution across the U.S. is often attributed to cost cutting pressures faced by local officials. We know little, however, about why these pressures are so severe for some cities compared to others. We present a new theory to argue that an important...

The crisis phenomena in the global and Russian economy directly related to the introduction of quarantine measures in 2020, led to the deficit of the consolidated regional budget. At end-2020, the consolidated regional budget and the budgets of territorial state extra-budgetary funds ran a...

Financially distressed U.S. municipalities may be eligible for federal bankruptcy protection under chapter 9 of the Bankruptcy Code. These municipal debtors tend to be burdened by the claims of two large classes of creditors: bondholders, on the one hand, and beneficiaries of underfunded...

This paper considers ways in which federal tax policy affects municipal asset and debt holdings. The tax treatment of municipal bonds and income creates an arbitrage opportunity for communities to issue tax exempt debt and invest in financial assets. I present evidence that suggests the rules in...

Recent large municipal bankruptcy cases have called into question the rights of debtor-cities to impair their capital markets creditors, on the one hand, and beneficiaries of their unfunded public pension promises, on the other. As I show in a companion work, federal bankruptcy law generally...

Measures of the state and local government capital stock and investment are necessary inputs into several areas of economic analysis, including the measurement of national wealth and its growth. We estimate net investment and depreciation of state and local government nonresidential capital. In...

Municipal bond markets experienced a significant amount of strain in response to the COVID-19 crisis, creating liquidity and credit concerns among market participants. During the economic shutdown resulting from the pandemic, income tax revenues were deferred and sales tax revenues decreased...

This paper uses data from 1988 federal income tax returns, which asked taxpayers to report their tax-exempt interest income as an information item, to analyze the distribution of tax-exempt asset holdings. More than three quarters of the tax-exempt debt held by households was held by those with...

This paper investigates whether municipalities in Poland use their municipal companies to increase debt capacity beyond the limitations imposed by the fiscal debt rules. The article presents corporate governance and agency problems on the example of relations between local government units and...

The 2019 keynote address offers an important opportunity for economic historians and policy makers to better understand the nuances associated with Detroit’s recent financial problems, ultimate bankruptcy, and its broader implications for state and local governments in general. This episode is...

At year-end 2019, the regional consolidated budgets and local government off-budget funds' budgets ran a surplus of RUB 17.4 billion or 0.02 percent of GDP (contraction by around 30-fold over the year). To compare, in 2018 the regional consolidated budgets and local government off-budget funds'...