Pricing Municipal Debt
分析市政债务定价与公司债务的不同，指出市政当局在违约时不会被接管，可能拥有额外资产用于偿债，但私有信息导致道德风险，且多期定价机制可激励额外支付。
Pricing municipal debt is a process substantially different from the valuation of corporate liabilities. Municipalities are not seized upon default. Therefore, they might own additional assets that could he made available to retire debt even when the value of pledged revenues is insufficient to do so. However, if the value of the municipality's additional assets is only observable privately, moral hazard can deter payments from these alterna? tive revenue sources. A second consequence of lack of seizure is that the municipality survives and might return to the capital markets to raise additional funds in the future. This opens an opportunity to induce extraordinary payments from the value of the ad? ditional assets through multiperiod pricing controls (e.g., by following defaults with poor pricing for subsequent securities issues).