1 option
Do Municipal Bond Investors Pay a Convenience Premium to Avoid Taxes? / Matthias Fleckenstein, Francis A. Longstaff.
- Format:
- Book
- Author/Creator:
- Fleckenstein, Matthias.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w31389.
- NBER working paper series no. w31389
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2023.
- Summary:
- We study the valuation of state-issued tax-exempt municipal bonds and find that there are significant convenience premia in their prices. These premia parallel those identified in Treasury markets. We find evidence that these premia are tax related. Specifically, the premia are related to measures of tax and fiscal uncertainty, forecast flows into state municipal bond funds, and are directly linked to outmigration from high-tax to low-tax states and to other measures of tax aversion such as IRA and retirement plan contributions. These results suggest that investors are willing to pay a substantial premium to avoid taxes.
- Notes:
- Print version record
- June 2023.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.