1. City size and geographic segmentation in the municipal bond market
- Author
-
Mary Jean Rivers and Barbara M. Yates
- Subjects
Finance ,Economics and Econometrics ,Small city ,business.industry ,media_common.quotation_subject ,Sample (statistics) ,City size ,Net interest income ,Municipal bond ,Debt ,Economics ,Obligation ,business ,Anecdotal evidence ,media_common - Abstract
Anecdotal evidence suggests that the municipal bond market for issues of small cities operates differently from the market for issues of large cities. This research verifies differences in the determinants of net interest costs between a sample of small cities and a sample of large cities issuing general obligation debt during 1982. In particular, for the small city sample being unrated was not a significant factor in determining net interest costs, supporting claims that small unrated cities are able to substitute other sources of information for ratings and place their issues without paying higher net interest costs.
- Published
- 1997
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