The Impact of Fiscal Governance on Bond Markets: Evidence from Late Budgets and State Government Borrowing Costs

Publikation: Working paperForskning

Standard

The Impact of Fiscal Governance on Bond Markets : Evidence from Late Budgets and State Government Borrowing Costs. / Andersen, Asger Lau; Lassen, David Dreyer; Nielsen, Lasse Holbøll Westh.

Department of Economics, University of Copenhagen, 2010.

Publikation: Working paperForskning

Harvard

Andersen, AL, Lassen, DD & Nielsen, LHW 2010 'The Impact of Fiscal Governance on Bond Markets: Evidence from Late Budgets and State Government Borrowing Costs' Department of Economics, University of Copenhagen.

APA

Andersen, A. L., Lassen, D. D., & Nielsen, L. H. W. (2010). The Impact of Fiscal Governance on Bond Markets: Evidence from Late Budgets and State Government Borrowing Costs. Department of Economics, University of Copenhagen.

Vancouver

Andersen AL, Lassen DD, Nielsen LHW. The Impact of Fiscal Governance on Bond Markets: Evidence from Late Budgets and State Government Borrowing Costs. Department of Economics, University of Copenhagen. 2010.

Author

Andersen, Asger Lau ; Lassen, David Dreyer ; Nielsen, Lasse Holbøll Westh. / The Impact of Fiscal Governance on Bond Markets : Evidence from Late Budgets and State Government Borrowing Costs. Department of Economics, University of Copenhagen, 2010.

Bibtex

@techreport{9209af30d53711df825b000ea68e967b,
title = "The Impact of Fiscal Governance on Bond Markets: Evidence from Late Budgets and State Government Borrowing Costs",
abstract = "Does fiscal governance affect government borrowing costs? We operationalize fiscal governance as the ability of governments to pass a budget on time and, using a unique data set on budget enactment dates, analyze the effect of such late budgets on government bond yield spreads. Based on a sample of 36 US states in the period 1988-1997, we estimate that a budget delay of 30 days has a long run impact on the yield spread between 2 and 10 basis points. States with sufficient liquidity in the form of large reserves face small or no costs from late budgets.",
keywords = "Faculty of Social Sciences, political deadlock, late budgets, fiscal stalemate, Chubb relative value survey, debt cost, bond spread",
author = "Andersen, {Asger Lau} and Lassen, {David Dreyer} and Nielsen, {Lasse Holb{\o}ll Westh}",
note = "JEL classification: H72, H61, H63",
year = "2010",
language = "English",
publisher = "Department of Economics, University of Copenhagen",
address = "Denmark",
type = "WorkingPaper",
institution = "Department of Economics, University of Copenhagen",

}

RIS

TY - UNPB

T1 - The Impact of Fiscal Governance on Bond Markets

T2 - Evidence from Late Budgets and State Government Borrowing Costs

AU - Andersen, Asger Lau

AU - Lassen, David Dreyer

AU - Nielsen, Lasse Holbøll Westh

N1 - JEL classification: H72, H61, H63

PY - 2010

Y1 - 2010

N2 - Does fiscal governance affect government borrowing costs? We operationalize fiscal governance as the ability of governments to pass a budget on time and, using a unique data set on budget enactment dates, analyze the effect of such late budgets on government bond yield spreads. Based on a sample of 36 US states in the period 1988-1997, we estimate that a budget delay of 30 days has a long run impact on the yield spread between 2 and 10 basis points. States with sufficient liquidity in the form of large reserves face small or no costs from late budgets.

AB - Does fiscal governance affect government borrowing costs? We operationalize fiscal governance as the ability of governments to pass a budget on time and, using a unique data set on budget enactment dates, analyze the effect of such late budgets on government bond yield spreads. Based on a sample of 36 US states in the period 1988-1997, we estimate that a budget delay of 30 days has a long run impact on the yield spread between 2 and 10 basis points. States with sufficient liquidity in the form of large reserves face small or no costs from late budgets.

KW - Faculty of Social Sciences

KW - political deadlock

KW - late budgets

KW - fiscal stalemate

KW - Chubb relative value survey

KW - debt cost

KW - bond spread

M3 - Working paper

BT - The Impact of Fiscal Governance on Bond Markets

PB - Department of Economics, University of Copenhagen

ER -

ID: 22432739