scroll to top
Loading icon
0

Mobile Menu

Header Layout

EBSCO Auth Banner

Let's find your institution. Click here.

Page title

Opioid Crisis Effects on Municipal Finance.

  • Academic Journal
  • Cornaggia, Kimberly1 (AUTHOR) kcornaggia@psu.edu
    Hund, John2 (AUTHOR)
    Nguyen, Giang3 (AUTHOR)
    Ye, Zihan4 (AUTHOR)
  • Review of Financial Studies. Apr2022, Vol. 35 Issue 4, p2019-2066. 48p.
  • We investigate the effects of opioid abuse on municipal finance. We employ instrumental variables, border discontinuity difference-in-differences regressions, and coarsened exact matching to identify consistent causal effects, while controlling for variation in economic conditions and demographics. Opioid abuse lowers credit ratings, increases new offer yields, and reduces bond issuance. Reversal of these effects following effective antiopioid legislation further supports causality. Differential effects due to investor heterogeneity suggest that opioid abuse affects municipal finance through a capital supply channel. Overall, we conclude that local opioid abuse impedes municipalities' access to capital and thus hurts their ability to provide public services and infrastructure. [ABSTRACT FROM AUTHOR]
Additional Information
Copyright of Review of Financial Studies is the property of Oxford University Press / USA and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

banner_970x250 (970x250)

sponsored