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Municipal Bond Ratings: Are They Worthwhile for Rural Governments?

Published online by Cambridge University Press:  10 May 2017

Patrick J. Sullivan
Patrick J. Sullivan*
Affiliation:
Economic Development Division, Economic Research Service, USDA
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Abstract

Rural governments in the Northeast purchased credit ratinqs for a high percentage of their general obligation bonds sold in 1977. This paper examines the effect credit ratings had on the interest cost of GO bonds sold by nonmetro governments in the Northeast. The results suggest that the decision to purchase a rating may be a costly error under certain circumstances.

Type
Symposia
Information
Journal of the Northeastern Agricultural Economics Council , Volume 11 , Issue 1 , Spring 1982 , pp. 67 - 73
Copyright
Copyright © Northeastern Agricultural and Resource Economics Association 

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Footnotes

The author wishes to thank Eleanor Whitehead for her assistance with the analysis.

References

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