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Municipal Bond Ratings: New Results, New Directions

Author

Listed:
  • Paul G. Farnham

    (Georgia State University)

  • George S. Cluff

    (Georgia State University)

Abstract

Using multiple discriminant analysis, this article examines the factors that affect municipal bond ratings through the use of a data set that includes more municipalities and municipal characteristics than the data sets used in previous studies. This data set permits a more detailed examination of the role of city size and location in the bond rating process. The study concludes with some observations on the directions for further research.

Suggested Citation

  • Paul G. Farnham & George S. Cluff, 1982. "Municipal Bond Ratings: New Results, New Directions," Public Finance Review, , vol. 10(4), pages 427-455, October.
    • Handle: RePEc:sae:pubfin:v:10:y:1982:i:4:p:427-455
    DOI: 10.1177/109114218201000402
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    References listed on IDEAS

    as
    1. Carleton, Willard T & Lerner, Eugene M, 1969. "Statistical Credit Scoring of Municipal Bonds," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(4), pages 750-764, November.
    2. Eisenbeis, Robert A, 1977. "Pitfalls in the Application of Discriminant Analysis in Business, Finance, and Economics," Journal of Finance, American Finance Association, vol. 32(3), pages 875-900, June.
    3. Gramlich, Edward M, 1976. "The New York City Fiscal Crisis: What Happened and What Is to Be Done?," American Economic Review, American Economic Association, vol. 66(2), pages 415-429, May.
    4. Michel, Allen J., 1977. "Municipal Bond Ratings: A Discriminant Analysis Approach," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 12(4), pages 587-598, November.
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    Cited by:

    1. Tima T. Moldogaziev & Tatyana Guzman, 2015. "Economic Crises, Economic Structure, and State Credit Quality Through-the-Cycle," Public Budgeting & Finance, Wiley Blackwell, vol. 35(4), pages 42-67, December.

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