U.S. municipal yields and unfunded state pension liabilities
| Autor: | Eduard Ponds, Z. Lekniute, Roel Beetsma |
|---|---|
| Přispěvatelé: | Faculteit Economie en Bedrijfskunde, Macro & International Economics (ASE, FEB), Research Group: Economics, Department of Economics |
| Jazyk: | angličtina |
| Rok vydání: | 2019 |
| Předmět: |
Economics and Econometrics
Economic policy Yield (finance) media_common.quotation_subject unfunded pension liabilities undefunding Monetary economics market values Debt 0502 economics and business Debt ratio Debt levels and flows Empirical evidence media_common 040101 forestry Pension explicit debt 050208 finance implicit debt 05 social sciences 04 agricultural and veterinary sciences Municipal bond civil servants pension funds municipal yields 0401 agriculture forestry and fisheries Business Internal debt actuarial values Finance |
| Zdroj: | Journal of Empirical Finance, 53, 15-32. Elsevier |
| ISSN: | 1879-1727 0927-5398 |
| DOI: | 10.1016/j.jempfin.2019.05.003 |
| Popis: | We present empirical evidence that municipal bond yields are increasing in the pension debt towards U.S. state civil servants. However, positive yield effects of both pension and explicit debt are found only for the period since the start of the crisis, suggesting that the crisis triggered awareness of budgetary sustainability. The marginal yield effect of higher pension debt is smaller than that of higher explicit debt, but still economically meaningful. The effect of higher pension debt seems stronger when using market values of pension assets than actuarial values, suggesting that investors pay more attention to market values. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|
Full Text from ScienceDirect