The impact of late budgets on state government borrowing costs

Research output: Contribution to journalJournal articleResearchpeer-review

Standard

The impact of late budgets on state government borrowing costs. / Andersen, Asger Lau; Lassen, David Dreyer; Nielsen, Lasse Holbøll Westh.

In: Journal of Public Economics, Vol. 109, 01.01.2014, p. 27-35.

Research output: Contribution to journalJournal articleResearchpeer-review

Harvard

Andersen, AL, Lassen, DD & Nielsen, LHW 2014, 'The impact of late budgets on state government borrowing costs', Journal of Public Economics, vol. 109, pp. 27-35. https://doi.org/10.1016/j.jpubeco.2013.10.004

APA

Andersen, A. L., Lassen, D. D., & Nielsen, L. H. W. (2014). The impact of late budgets on state government borrowing costs. Journal of Public Economics, 109, 27-35. https://doi.org/10.1016/j.jpubeco.2013.10.004

Vancouver

Andersen AL, Lassen DD, Nielsen LHW. The impact of late budgets on state government borrowing costs. Journal of Public Economics. 2014 Jan 1;109:27-35. https://doi.org/10.1016/j.jpubeco.2013.10.004

Author

Andersen, Asger Lau ; Lassen, David Dreyer ; Nielsen, Lasse Holbøll Westh. / The impact of late budgets on state government borrowing costs. In: Journal of Public Economics. 2014 ; Vol. 109. pp. 27-35.

Bibtex

@article{4059d7d55ebc4ce8b825eece1a9d0601,
title = "The impact of late budgets on state government borrowing costs",
abstract = "We analyze how a key component of fiscal governance, the ability of governments to pass a budget on time, affects government bond yield spreads. Based on a sample of 36 US states from 1988 to 1997, and using an original data set on budget enactment dates, we estimate that a 30. day budget delay has a cumulative impact that is equivalent to a one-time increase in the yield spread of around 10 basis points. States with sufficient liquidity incur no costs from late budgets, while unified governments face large penalties from not finishing a budget on time.",
keywords = "Faculty of Social Sciences, Fiscal governance, Late budgets, US States, Government borrowing cost, Sovereign bond spreads, Divided government, End-of-year balances",
author = "Andersen, {Asger Lau} and Lassen, {David Dreyer} and Nielsen, {Lasse Holb{\o}ll Westh}",
note = "JEL classification: H72; H61; H63",
year = "2014",
month = "1",
day = "1",
doi = "10.1016/j.jpubeco.2013.10.004",
language = "English",
volume = "109",
pages = "27--35",
journal = "Journal of Public Economics",
issn = "0047-2727",
publisher = "Elsevier",

}

RIS

TY - JOUR

T1 - The impact of late budgets on state government borrowing costs

AU - Andersen, Asger Lau

AU - Lassen, David Dreyer

AU - Nielsen, Lasse Holbøll Westh

N1 - JEL classification: H72; H61; H63

PY - 2014/1/1

Y1 - 2014/1/1

N2 - We analyze how a key component of fiscal governance, the ability of governments to pass a budget on time, affects government bond yield spreads. Based on a sample of 36 US states from 1988 to 1997, and using an original data set on budget enactment dates, we estimate that a 30. day budget delay has a cumulative impact that is equivalent to a one-time increase in the yield spread of around 10 basis points. States with sufficient liquidity incur no costs from late budgets, while unified governments face large penalties from not finishing a budget on time.

AB - We analyze how a key component of fiscal governance, the ability of governments to pass a budget on time, affects government bond yield spreads. Based on a sample of 36 US states from 1988 to 1997, and using an original data set on budget enactment dates, we estimate that a 30. day budget delay has a cumulative impact that is equivalent to a one-time increase in the yield spread of around 10 basis points. States with sufficient liquidity incur no costs from late budgets, while unified governments face large penalties from not finishing a budget on time.

KW - Faculty of Social Sciences

KW - Fiscal governance

KW - Late budgets

KW - US States

KW - Government borrowing cost

KW - Sovereign bond spreads

KW - Divided government

KW - End-of-year balances

UR - http://www.scopus.com/inward/record.url?scp=84888259166&partnerID=8YFLogxK

U2 - 10.1016/j.jpubeco.2013.10.004

DO - 10.1016/j.jpubeco.2013.10.004

M3 - Journal article

VL - 109

SP - 27

EP - 35

JO - Journal of Public Economics

JF - Journal of Public Economics

SN - 0047-2727

ER -

ID: 94378154