A meta-analysis of the state and local government borrowing costs

• 成果类型: Article
• 署名作者: Gerrish, Ed; Ivonchyk, Mikhail; Charles, Cleopatra; Greer, Robert A.; Moldogaziev, Temirlan T.
• 署名单位: University of South Dakota; State University of New York (SUNY) System; University at Albany, SUNY; Rutgers University System; Rutgers University New Brunswick; Rutgers University Newark; Texas A&M University System; Texas A&M University College Station; Bush School of Government & Public Service; Indiana University System; Indiana University Bloomington
• 刊物名称: PUBLIC ADMINISTRATION REVIEW
• ISSN/ISSBN: 0033-3352
• DOI: 10.1111/puar.13822
• 发表日期: 2025
• 页码: 486-503
• 关键词: Municipal bond; negotiated underwritings; infrastructure banks; interest-rates; debt; IMPACT; MARKET; sale; COMPETITION; reputation

摘要

State and local governments seek to save money through fiscal efficiency. One such mechanism widely studied in the literature is through the choice for financial underwriting of debt. The extant literature generally suggests that state and local governments can lower borrowing costs through a competitive method of sale. In a meta-analysis of 418 effects from 97 studies, we find that competitive sales do enjoy a statistically significant reduction in borrowing costs However, these effects are moderated when using key control variables, the use of more recent data, as well as due to measurement and methodological choices. Consequently, despite a large number of studies in this area, more research specific to small borrowers, new and understudied contexts, or those using sophisticated selection and causal methods is needed to understand whether the practical preference for competitive sales should persist.