Do public pension obligations affect state funding costs?

Jean Burson, John Carlson (), Ozgur Ergungor () and Patricia Waiwood

No 1301, Working Papers (Old Series) from Federal Reserve Bank of Cleveland

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 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2013
New Economics Papers: this item is included in nep-age and nep-ure
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