Working Paper
Do public pension obligations affect state funding costs?
Abstract: States? unfunded pension obligations to their current and retired employees have exploded in recent years to levels that are estimated to be between $750 billion and $4.4 trillion. In theory, this massive debt should have implications for states? ability to meet their financial obligations and a measurable impact on funding costs. Yet, we find no evidence that municipal bond markets are pricing the risks to states? fiscal health arising from these large obligations.
Keywords: Pensions; Local finance;
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https://www.clevelandfed.org/newsroom-and-events/publications/working-papers/2013-working-papers/wp-1301-do-public-pension-obligations-affect-state-funding-costs.aspx
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Bibliographic Information
Provider: Federal Reserve Bank of Cleveland
Part of Series: Working Papers (Old Series)
Publication Date: 2013
Number: 1301