Analyzing Changes in Municipal Bond Ratings: A Different Perspective

Anthony L. Loviscek and Frederick D. Crowley
Additional contact information
Anthony L. Loviscek: Division of Business & Economics, Indiana-Purdue University, Fort Wayne, Indiana 46805
Frederick D. Crowley: Division of Business & Economics, Indiana-Purdue University, Fort Wayne, Indiana 46805

Urban Studies, 1988, vol. 25, issue 2, 124-132

Abstract: Do variables that measure economic base diversification, market expansion, population growth, and energy endowment affect municipal bond ratings? To examine this question, we specify and test a linear probability model of changes in municipal bond ratings related to changes in these variables. Using county data for 49 urban areas for 1970 and 1981, we find that changes in each of the variables strongly influence changes in municipal bond ratings. The results suggest that municipal officials and investors can determine the credit condition of a municipality more accurately by using these variables than by using financial accounting variables. The results also indicate that the ratings can represent a unique, market evaluation of the success of local economic development efforts.

Date: 1988
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1080/00420988820080171 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:urbstu:v:25:y:1988:i:2:p:124-132

DOI: 10.1080/00420988820080171

Access Statistics for this article

More articles in Urban Studies from Urban Studies Journal Limited
Bibliographic data for series maintained by SAGE Publications ().