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In this paper, we survey the cost differentials by debt issue purpose and the method of underwriting. We find that cost differentials are a function of the purpose for which the debt was issued, with bond purposes traditionally considered riskier facing higher borrowing costs. However, this effect is not uniform and varies by credit quality portfolios. Moreover, the method of bond sale is an important factor for true interest costs. Overall, the competitive method of sale consistently performs better than the negotiated method of sale in all regression models, even after correcting for self‐selection.

AbstractA Capital Appreciation Bond (CAB) is a financial instrument that is most attractive as a resource‐flow management instrument. It bridges multiple fiscal years for jurisdictions experiencing rapid growth, potentially stretching for decades, but may also be used by localities experiencing fiscal distress. Using debt issuance data by independent school districts in Texas, who utilized almost all such bonds in the state, we present empirical evidence that CABs are associated with both the service and fiscal pressure factors. We further observe that, though the threat from CABs in terms of borrowing costs may have been exaggerated, enacting limits on debt repayment ratios (ratio of payment size at maturity to premium size) was likely the right legislative intervention.

AbstractIn many emerging and authoritarian countries, civil society organizations that focus on political or sensitive policy issues are being cracked down upon, while service‐oriented ones are given a relatively greater ability to operate. What might the consequence of this be for democratic practice given the important role civic organizations play in this process? We examine this question by considering whether the absence of confidence in a country's governing institutions is related to membership in service‐rather than governance‐focused civic organizations, and how such membership is associated with elite‐challenging, political activities in Kazakhstan, Kyrgyzstan, and Tajikistan. We find that individuals who have no confidence in state institutions are less likely to seek membership in governance‐focused civic organizations, but not necessarily in service‐focused ones. At the same time, membership in both types of civic organizations is associated with participation in political activities, while beliefs that a country is run democratically decreases it. This suggests that a variety of civic organizational types, even those without an explicit governance‐focus, contingent on perceptions of democratic governance and other covariates held constant, enhance democratic practice.

AbstractState and local governments seek to save money through fiscal efficiency. One such mechanism widely studied in the literature is through the choice for financial underwriting of debt. The extant literature generally suggests that state and local governments can lower borrowing costs through a competitive method of sale. In a meta‐analysis of 418 effects from 97 studies, we find that competitive sales do enjoy a statistically significant reduction in borrowing costs However, these effects are moderated when using key control variables, the use of more recent data, as well as due to measurement and methodological choices. Consequently, despite a large number of studies in this area, more research specific to small borrowers, new and understudied contexts, or those using sophisticated selection and causal methods is needed to understand whether the practical preference for competitive sales should persist.

AbstractThough many individuals are aware of the need to address environmental concerns, fewer are willing to pay for climate action or think the environment should be a priority for government spending. One compelling reason is that they prioritize using scarce resources to address immediate material concerns. This is particularly likely for individuals facing absolute material scarcity or for those who think they are relatively economically worse off, especially in contexts characterized by rapid transformation and volatility in the levels and quality of social welfare provision. To test these expectations, we analyze survey data from formerly Communist economies, which today find themselves with vastly different fortunes. Empirical findings suggest that absolute and relative material scarcity affect opinions regarding government spending on, and the willingness to pay more for, environmental action. However, willingness to pay more for government public services, inclusive of anti‐poverty initiatives, has an impact on willingness to pay more for climate action, but in counter‐intuitive ways. Overall, the results appear to suggest that explicitly addressing and relating individual living standards and inequality with environmental concerns may expand support for climate action.