| Authors |
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| Publication date |
09-2019
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| Journal |
Journal of Empirical Finance
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| Volume | Issue number |
53
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| Pages (from-to) |
15-32
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| Organisations |
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Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
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Faculty of Economics and Business (FEB)
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| Abstract |
We present empirical evidence that municipal bond yields are increasing in both the explicit debt and the unfunded pension liabilities of U.S. state civil servants. However, the positive yield effects of both types of debt are found only for the period since the start of the global financial crisis. A potential explanation is that the crisis triggered awareness of budgetary sustainability. Further, the marginal yield effect of higher pension debt is significantly smaller than that of higher explicit debt.
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| Document type |
Article
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| Language |
English
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| Related publication |
US municipal yields and unfunded state pension liabilities
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| Published at |
https://doi.org/10.1016/j.jempfin.2019.05.003
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