Journal article
Municipal Bond Markets
- Cestau, Dario IE Business School, 28006 Madrid, Spain;
- Hollifield, Burton Tepper School of Business, Carnegie Mellon University, Pittsburgh, Pennsylvania 15213, USA;
- Li, Dan Board of Governors of the Federal Reserve System, Washington, DC 20551, USA;
- Schürhoff, Norman Faculty of Business and Economics and Swiss Finance Institute, University of Lausanne, 1015 Lausanne, Switzerland;
Published in:
- Annual Review of Financial Economics. - Annual Reviews. - 2019, vol. 11, no. 1, p. 65-84
English
The effective functioning of the municipal bond market is crucial for the provision of public services, as it is the largest capital market for state and municipal issuers. Prior research has documented tax, credit, liquidity, and segmentation effects in municipal bonds. Recent regulatory initiatives to improve transparency have made granular trade data available to researchers, rendering the municipal bond market a natural laboratory for the study of financial intermediation, asset pricing in decentralized markets, and local public finance. Trade-by-trade studies have found large trading costs, contemporaneous price dispersion, and other deviations from the law of one price. More research is required to understand optimal market design and the impact of post-crisis regulation, sustainability, and financial technology.
- Language
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- English
- Open access status
- closed
- Identifiers
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- DOI 10.1146/annurev-financial-110118-123034
- ISSN 1941-1367
- Persistent URL
- https://folia.unifr.ch/global/documents/151075
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