skip to content
Stock market yields and the pricing of municipal bonds Preview this item
ClosePreview this item
Checking...

Stock market yields and the pricing of municipal bonds

Author: N Gregory Mankiw; James M Poterba; National Bureau of Economic Research.
Publisher: Cambridge, MA : National Bureau of Economic Research, ©1996.
Series: Working paper series (National Bureau of Economic Research), working paper no. 5607.
Edition/Format:   eBook : Document : National government publication : EnglishView all editions and formats
Summary:
Abstract: This paper proposes an alternative to the traditional model for explaining the spread between taxable and tax-exempt bond yields. This alternative model is a special case of a general class of clientele models of portfolio choice and asset market equilibrium. In particular, we consider a setting with two types of investors, a taxable investor and a tax-exempt investor, who hold specialized bond portfolios.  Read more...
Rating:

(not yet rated) 0 with reviews - Be the first.

Subjects
More like this

 

Find a copy in the library

&AllPage.SpinnerRetrieving; Finding libraries that hold this item...

Details

Material Type: Document, Government publication, National government publication, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: N Gregory Mankiw; James M Poterba; National Bureau of Economic Research.
OCLC Number: 70065100
Notes: "June 1996."
Description: 1 online resource (20 pages).
Series Title: Working paper series (National Bureau of Economic Research), working paper no. 5607.
Responsibility: N. Gregory Mankiw, James M. Poterba.

Abstract:

Abstract: This paper proposes an alternative to the traditional model for explaining the spread between taxable and tax-exempt bond yields. This alternative model is a special case of a general class of clientele models of portfolio choice and asset market equilibrium. In particular, we consider a setting with two types of investors, a taxable investor and a tax-exempt investor, who hold specialized bond portfolios. The tax-exempt investor holds only taxable bonds, and the taxable investor holds only tax-exempt bonds. Both investors hold equity, and the taxable and tax-exempt bond markets are linked through the equilibrium conditions governing equity holding and bond holding for each type of investor. In contrast to the traditional model, this alternative model has the potential to explain the small observed spread between taxable and tax-exempt yields. In addition, this model predicts that the yield spread between taxable and tax-exempt bonds should be an increasing function of the dividend yield on corporate stocks. Although the substantial changes in the tax code during the last four decades complicate the testing of this model, we find some support for the predicted relationship between the equity dividend yield and the yield spread between taxable and tax-exempt bonds.

Reviews

User-contributed reviews
Retrieving GoodReads reviews...
Retrieving DOGObooks reviews...

Tags

Be the first.

Similar Items

Confirm this request

You may have already requested this item. Please select Ok if you would like to proceed with this request anyway.

Linked Data


Primary Entity

<http://www.worldcat.org/oclc/70065100> # Stock market yields and the pricing of municipal bonds
    a schema:MediaObject, schema:Book, schema:CreativeWork ;
   library:oclcnum "70065100" ;
   library:placeOfPublication <http://id.loc.gov/vocabulary/countries/mau> ;
   library:placeOfPublication <http://experiment.worldcat.org/entity/work/data/40176229#Place/cambridge_ma> ; # Cambridge, MA
   schema:about <http://id.worldcat.org/fast/1090236> ; # Rate of return
   schema:about <http://id.worldcat.org/fast/1029196> ; # Municipal bonds--Taxation
   schema:about <http://id.loc.gov/authorities/subjects/sh85088439> ; # Municipal bonds--Taxation
   schema:bookFormat schema:EBook ;
   schema:contributor <http://viaf.org/viaf/135446122> ; # National Bureau of Economic Research.
   schema:contributor <http://viaf.org/viaf/9910825> ; # James M. Poterba
   schema:copyrightYear "1996" ;
   schema:creator <http://viaf.org/viaf/85258531> ; # N Gregory Mankiw
   schema:datePublished "1996" ;
   schema:description "Abstract: This paper proposes an alternative to the traditional model for explaining the spread between taxable and tax-exempt bond yields. This alternative model is a special case of a general class of clientele models of portfolio choice and asset market equilibrium. In particular, we consider a setting with two types of investors, a taxable investor and a tax-exempt investor, who hold specialized bond portfolios. The tax-exempt investor holds only taxable bonds, and the taxable investor holds only tax-exempt bonds. Both investors hold equity, and the taxable and tax-exempt bond markets are linked through the equilibrium conditions governing equity holding and bond holding for each type of investor. In contrast to the traditional model, this alternative model has the potential to explain the small observed spread between taxable and tax-exempt yields. In addition, this model predicts that the yield spread between taxable and tax-exempt bonds should be an increasing function of the dividend yield on corporate stocks. Although the substantial changes in the tax code during the last four decades complicate the testing of this model, we find some support for the predicted relationship between the equity dividend yield and the yield spread between taxable and tax-exempt bonds."@en ;
   schema:exampleOfWork <http://worldcat.org/entity/work/id/40176229> ;
   schema:genre "Government publication"@en ;
   schema:genre "National government publication"@en ;
   schema:inLanguage "en" ;
   schema:isPartOf <http://experiment.worldcat.org/entity/work/data/40176229#Series/nber_working_paper_series> ; # NBER working paper series ;
   schema:isPartOf <http://experiment.worldcat.org/entity/work/data/40176229#Series/working_paper_series_national_bureau_of_economic_research> ; # Working paper series (National Bureau of Economic Research) ;
   schema:name "Stock market yields and the pricing of municipal bonds"@en ;
   schema:productID "70065100" ;
   schema:publication <http://www.worldcat.org/title/-/oclc/70065100#PublicationEvent/cambridge_ma_national_bureau_of_economic_research_1996> ;
   schema:publisher <http://experiment.worldcat.org/entity/work/data/40176229#Agent/national_bureau_of_economic_research> ; # National Bureau of Economic Research
   schema:url <http://papers.nber.org/papers/w5607> ;
   schema:url <http://papers.nber.org/> ;
   wdrs:describedby <http://www.worldcat.org/title/-/oclc/70065100> ;
    .


Related Entities

<http://experiment.worldcat.org/entity/work/data/40176229#Agent/national_bureau_of_economic_research> # National Bureau of Economic Research
    a bgn:Agent ;
   schema:name "National Bureau of Economic Research" ;
    .

<http://experiment.worldcat.org/entity/work/data/40176229#Series/nber_working_paper_series> # NBER working paper series ;
    a bgn:PublicationSeries ;
   schema:hasPart <http://www.worldcat.org/oclc/70065100> ; # Stock market yields and the pricing of municipal bonds
   schema:name "NBER working paper series ;" ;
    .

<http://experiment.worldcat.org/entity/work/data/40176229#Series/working_paper_series_national_bureau_of_economic_research> # Working paper series (National Bureau of Economic Research) ;
    a bgn:PublicationSeries ;
   schema:hasPart <http://www.worldcat.org/oclc/70065100> ; # Stock market yields and the pricing of municipal bonds
   schema:name "Working paper series (National Bureau of Economic Research) ;" ;
    .

<http://id.loc.gov/authorities/subjects/sh85088439> # Municipal bonds--Taxation
    a schema:Intangible ;
   schema:name "Municipal bonds--Taxation"@en ;
    .

<http://id.worldcat.org/fast/1029196> # Municipal bonds--Taxation
    a schema:Intangible ;
   schema:name "Municipal bonds--Taxation"@en ;
    .

<http://id.worldcat.org/fast/1090236> # Rate of return
    a schema:Intangible ;
   schema:name "Rate of return"@en ;
    .

<http://viaf.org/viaf/135446122> # National Bureau of Economic Research.
    a schema:Organization ;
   schema:name "National Bureau of Economic Research." ;
    .

<http://viaf.org/viaf/85258531> # N Gregory Mankiw
    a schema:Person ;
   schema:familyName "Mankiw" ;
   schema:givenName "N. Gregory" ;
   schema:name "N Gregory Mankiw" ;
    .

<http://viaf.org/viaf/9910825> # James M. Poterba
    a schema:Person ;
   schema:familyName "Poterba" ;
   schema:givenName "James M." ;
   schema:name "James M. Poterba" ;
    .


Content-negotiable representations

Close Window

Please sign in to WorldCat 

Don't have an account? You can easily create a free account.