Does it make any difference anymore? : competitive versus negotiated municipal bond issuance
By: SIMONSEN, William
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Contributor(s): ROBBINS, Mark D.
Material type: 
ArticlePublisher: Malden, MA : Blackwell Publishers, jan./feb. 1996Public administration review : PAR 56, 1, p. 57-64Abstract: Do municipal bonds sold through competition have lower interest rates for issuers than negotiated sales? Research done in the 1970s and 1980s suggests that, all else equal, interest costs are generally lower for competitively bid municipal bonds compared to negotiated bond sales. William Simonsen and Mark D. Robbins explore this question in light of changes in the municipal bond market that suggest a need to revisit this question. Their findings indicate that on average, and all else equal, competitive sales result in lower ihterest cost to issuers compared to negotiated sales, and that this difference increases with the number of bids received. This research has added salience given several recent scandals and alleged improprieties in the municipal bond market
Do municipal bonds sold through competition have lower interest rates for issuers than negotiated sales? Research done in the 1970s and 1980s suggests that, all else equal, interest costs are generally lower for competitively bid municipal bonds compared to negotiated bond sales. William Simonsen and Mark D. Robbins explore this question in light of changes in the municipal bond market that suggest a need to revisit this question. Their findings indicate that on average, and all else equal, competitive sales result in lower ihterest cost to issuers compared to negotiated sales, and that this difference increases with the number of bids received. This research has added salience given several recent scandals and alleged improprieties in the municipal bond market
public administration review par
january/february 1996
volume 56 número 1
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