Competition and Market Concentration in the Municipal Bond Market

Cestau, Dario

Publication:
Competition and Market Concentration in the Municipal Bond Market

dc.contributor.author	Cestau, Dario
dc.contributor.ror	https://ror.org/02jjdwm75
dc.date.accessioned	2025-04-25T07:53:28Z
dc.date.available	2025-04-25T07:53:28Z
dc.date.issued	2019-07-11
dc.description.abstract	Lack of competition among the underwriters of municipal bonds increases the borrowing costs of local municipalities. I find that the proportion of municipal bonds sold in competitive sales in the state has an economically significant effect on several measures of competitiveness. Competitive sales increase the number of active underwriters in the state and substantially decrease the concentration in the market for underwriting services for municipal bonds. I also find that state restrictions on the negotiated sale of municipal bonds can materially decrease market concentration. Market concentration has increased considerably over time, but only negotiated deals have contributed to greater concentration.
dc.description.peerreviewed	yes
dc.description.status	Published
dc.format	application/pdf
dc.identifier.citation	Cestau, D. (2019). Competition and market concentration in the municipal bond market. Available at SSRN 3497599. http://dx.doi.org/10.2139/ssrn.3497599.
dc.identifier.doi	http://dx.doi.org/10.2139/ssrn.3497599
dc.identifier.uri	https://hdl.handle.net/20.500.14417/3760
dc.language.iso	en
dc.publisher	SSRN
dc.relation.department	Finance
dc.relation.entity	IE University
dc.relation.school	IE Business School
dc.rights	Attribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.accessRights	info:eu-repo/semantics/openAccess
dc.rights.uri	https://creativecommons.org/licenses/by-nc-nd/4.0/deed.en
dc.subject.keyword	Market power
dc.subject.keyword	Concentration
dc.subject.keyword	Herfindahl Index
dc.subject.keyword	Book building
dc.subject.keyword	Auctions
dc.subject.keyword	Municipal bonds
dc.title	Competition and Market Concentration in the Municipal Bond Market
dc.type	info:eu-repo/semantics/workingPaper
dc.version.type	info:eu-repo/semantics/publishedVersion
dspace.entity.type	Publication
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relation.isAuthorOfPublication.latestForDiscovery	9305e847-1b1f-459c-a881-7cfaca868a1f