ERIC Number: EJ945532
Record Type: Journal
Publication Date: 2011
Abstractor: As Provided
Reference Count: N/A
The Impact of Debt Limitations and Referenda Requirements on the Cost of School District Bond Issues
Harris, Mary H.; Munley, Vincent G.
Education Finance and Policy, v6 n4 p537-556 Fall 2011
One distinction between the markets for corporate and municipal bonds involves institutional constraints that apply to some municipal bond issues. This research focuses on how public finance institutions, in particular explicit debt limits and referenda requirements, affect the borrowing cost of individual school district bond issues. The empirical model specifies as the dependent variable the true interest cost of issuing debt. The results suggest that the presence of referenda requirements for the approval of annual school district budgets imposes an additional cost for borrowing funds.
Descriptors: Debt (Financial), Bond Issues, School Districts, Costs, Credit (Finance), Budgets, Educational Finance, School Budget Elections, Educational Policy, Policy Analysis, Financial Policy
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Publication Type: Journal Articles; Reports - Research
Education Level: Elementary Secondary Education
Authoring Institution: N/A