IDEAS home Printed from https://ideas.repec.org/p/osf/socarx/7t5jz.html
   My bibliography  Save this paper

Roe v. Rates: Reproductive Healthcare and Public Financing Costs

Author

Listed:
  • Lu, Runjing

    (University of Alberta)

  • Ye, Zihan

Abstract

After the U.S. Supreme Court overturned Roe v. Wade, states with abortion "trigger" bans tied to the decision see an increase in municipal bond yields relative to states with preexisting laws protecting abortion. The effects are stronger in counties where access to abortion services decrease more after the court ruling, where residents are more accepting of reproductive healthcare, and which rely more on female workforce. Using the stock market’s reaction following the Court’s decision and the staggered state-level adoption of laws targeting abortion providers, we identify deteriorated firm value, worsening business dynamism, and net out-migration of residents as key factors underlying the rise in municipal bond yields. Together, our results highlight the importance of reproductive healthcare policies in driving local economies and public financing costs.

Suggested Citation

  • Lu, Runjing & Ye, Zihan, 2023. "Roe v. Rates: Reproductive Healthcare and Public Financing Costs," SocArXiv 7t5jz, Center for Open Science.
    • Handle: RePEc:osf:socarx:7t5jz
    DOI: 10.31219/osf.io/7t5jz
    as

    Download full text from publisher

    File URL: https://osf.io/download/64f166786c0f5a09f8d05971/
    Download Restriction: no
    File URL: https://libkey.io/10.31219/osf.io/7t5jz?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kimberly Cornaggia & John Hund & Giang Nguyen & Zihan Ye, 2022. "Opioid Crisis Effects on Municipal Finance," The Review of Financial Studies, Society for Financial Studies, vol. 35(4), pages 2019-2066.
    2. Manuel Adelino & Igor Cunha & Miguel A. Ferreira, 2017. "The Economic Effects of Public Financing: Evidence from Municipal Bond Ratings Recalibration," The Review of Financial Studies, Society for Financial Studies, vol. 30(9), pages 3223-3268.
    3. Claudia Goldin & Lawrence F. Katz, 2002. "The Power of the Pill: Oral Contraceptives and Women's Career and Marriage Decisions," Journal of Political Economy, University of Chicago Press, vol. 110(4), pages 730-770, August.
    4. Sarah Miller & Laura R. Wherry & Diana Greene Foster, 2023. "The Economic Consequences of Being Denied an Abortion," American Economic Journal: Economic Policy, American Economic Association, vol. 15(1), pages 394-437, February.
    5. Daniel Garrett & Andrey Ordin & James W Roberts & Juan Carlos Suárez Serrato, 2023. "Tax Advantages and Imperfect Competition in Auctions for Municipal Bonds," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(2), pages 815-851.
    6. Paul Goldsmith-Pinkham & Matthew T. Gustafson & Ryan C. Lewis & Michael Schwert, 2022. "Sea Level Rise Exposure and Municipal Bond Yields," NBER Working Papers 30660, National Bureau of Economic Research, Inc.
    7. Gao, Pengjie & Lee, Chang & Murphy, Dermot, 2022. "Good for your fiscal health? The effect of the affordable care act on healthcare borrowing costs," Journal of Financial Economics, Elsevier, vol. 145(2), pages 464-488.
    8. David Bloom & David Canning & Günther Fink & Jocelyn Finlay, 2009. "Fertility, female labor force participation, and the demographic dividend," Journal of Economic Growth, Springer, vol. 14(2), pages 79-101, June.
    9. Tania Babina & Chotibhak Jotikasthira & Christian Lundblad & Tarun Ramadorai, 2021. "Heterogeneous Taxes and Limited Risk Sharing: Evidence from Municipal Bonds [The distribution of realized stock return volatility]," The Review of Financial Studies, Society for Financial Studies, vol. 34(1), pages 509-568.
    10. Schultz, Paul, 2012. "The market for new issues of municipal bonds: The roles of transparency and limited access to retail investors," Journal of Financial Economics, Elsevier, vol. 106(3), pages 492-512.
    11. Joshua D. Angrist & William N. Evans, 1996. "Schooling and Labor Market Consequences of the 1970 State Abortion Reforms," NBER Working Papers 5406, National Bureau of Economic Research, Inc.
    12. Cristian Pop-Eleches, 2006. "The Impact of an Abortion Ban on Socioeconomic Outcomes of Children: Evidence from Romania," Journal of Political Economy, University of Chicago Press, vol. 114(4), pages 744-773, August.
    13. Tim Liu & Christos A & Paige Ouimet & Elena Simintzi, 2023. "The Distribution of Nonwage Benefits: Maternity Benefits and Gender Diversity," The Review of Financial Studies, Society for Financial Studies, vol. 36(1), pages 194-234.
    14. Alexander W. Butler & Larry Fauver & Sandra Mortal, 2009. "Corruption, Political Connections, and Municipal Finance," The Review of Financial Studies, Society for Financial Studies, vol. 22(7), pages 2673-2705, July.
    15. Arnold, Grace E., 2022. "The Impact of Targeted Regulation of Abortion Providers Laws on Abortions and Births," GLO Discussion Paper Series 1093, Global Labor Organization (GLO).
    16. Painter, Marcus, 2020. "An inconvenient cost: The effects of climate change on municipal bonds," Journal of Financial Economics, Elsevier, vol. 135(2), pages 468-482.
    17. Merton, Robert C, 1974. "On the Pricing of Corporate Debt: The Risk Structure of Interest Rates," Journal of Finance, American Finance Association, vol. 29(2), pages 449-470, May.
    18. Cheng, Stephanie F. & De Franco, Gus & Lin, Pengkai, 2023. "Marijuana liberalization and public finance: A capital market perspective on the passage of medical use laws," Journal of Accounting and Economics, Elsevier, vol. 75(1).
    19. Grace Arnold, 2022. "The impact of targeted regulation of abortion providers laws on abortions and births," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(4), pages 1443-1472, October.
    20. Gao, Pengjie & Lee, Chang & Murphy, Dermot, 2020. "Financing dies in darkness? The impact of newspaper closures on public finance," Journal of Financial Economics, Elsevier, vol. 135(2), pages 445-467.
    21. Benjamin Bennett & Isil Erel & Léa H. Stern & Zexi Wang, 2020. "Paid Leave Pays Off: The Effects of Paid Family Leave on Firm Performance," NBER Working Papers 27788, National Bureau of Economic Research, Inc.
    22. Elizabeth Oltmans Ananat & Jonathan Gruber & Phillip Levine, 2007. "Abortion Legalization and Life-Cycle Fertility," Journal of Human Resources, University of Wisconsin Press, vol. 42(2).
    23. Butler, Alexander W. & Yi, Hanyi, 2022. "Aging and public financing costs: Evidence from U.S. municipal bond markets," Journal of Public Economics, Elsevier, vol. 211(C).
    24. Elizabeth Oltmans Ananat & Jonathan Gruber & Phillip B. Levine & Douglas Staiger, 2009. "Abortion and Selection," The Review of Economics and Statistics, MIT Press, vol. 91(1), pages 124-136, February.
    25. Caitlin Knowles Myers, 2017. "The Power of Abortion Policy: Reexamining the Effects of Young Women’s Access to Reproductive Control," Journal of Political Economy, University of Chicago Press, vol. 125(6), pages 2178-2224.
    26. Francis A. Longstaff, 2011. "Municipal Debt and Marginal Tax Rates: Is There a Tax Premium in Asset Prices?," Journal of Finance, American Finance Association, vol. 66(3), pages 721-751, June.
    27. Cuny, Christine, 2018. "When knowledge is power: Evidence from the municipal bond market," Journal of Accounting and Economics, Elsevier, vol. 65(1), pages 109-128.
    28. Bitler, Marianne & Zavodny, Madeline, 2001. "The effect of abortion restrictions on the timing of abortions," Journal of Health Economics, Elsevier, vol. 20(6), pages 1011-1032, November.
    29. Gao, Pengjie & Lee, Chang & Murphy, Dermot, 2019. "Municipal borrowing costs and state policies for distressed municipalities," Journal of Financial Economics, Elsevier, vol. 132(2), pages 404-426.
    30. Joshua D Gottlieb & Richard R Townsend & Ting Xu, 2022. "Does Career Risk Deter Potential Entrepreneurs?," The Review of Financial Studies, Society for Financial Studies, vol. 35(9), pages 3973-4015.
    31. Andrew Ang & Vineer Bhansali & Yuhang Xing, 2010. "Taxes on Tax‐Exempt Bonds," Journal of Finance, American Finance Association, vol. 65(2), pages 565-601, April.
    32. Sun, Liyang & Abraham, Sarah, 2021. "Estimating dynamic treatment effects in event studies with heterogeneous treatment effects," Journal of Econometrics, Elsevier, vol. 225(2), pages 175-199.
    33. Tania Babina & Chotibhak Jotikasthira & Christian Lundblad & Tarun Ramadorai & Andrew Karolyi, 2021. "Heterogeneous Taxes and Limited Risk Sharing: Evidence from Municipal Bonds," Review of Economic Studies, Oxford University Press, vol. 34(1), pages 509-568.
    34. Michael Schwert, 2017. "Municipal Bond Liquidity and Default Risk," Journal of Finance, American Finance Association, vol. 72(4), pages 1683-1722, August.
    35. Melanie Guldi, 2008. "Fertility effects of abortion and birth control pill access for minors," Demography, Springer;Population Association of America (PAA), vol. 45(4), pages 817-827, November.
    36. Martha J. Bailey, 2006. "More Power to the Pill: The Impact of Contraceptive Freedom on Women's Life Cycle Labor Supply," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(1), pages 289-320.
    37. Zandberg, Jonathan, 2021. "Family comes first: Reproductive health and the gender gap in entrepreneurship," Journal of Financial Economics, Elsevier, vol. 140(3), pages 838-864.
    38. Myers, Caitlin Knowles, 2021. "Measuring the Burden: The Effect of Travel Distance on Abortions and Births," IZA Discussion Papers 14556, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Butler, Alexander W. & Yi, Hanyi, 2022. "Aging and public financing costs: Evidence from U.S. municipal bond markets," Journal of Public Economics, Elsevier, vol. 211(C).
    2. Farrell, Michael & Murphy, Dermot & Painter, Marcus & Zhang, Guangli, 2023. "The complexity yield puzzle: A textual analysis of municipal bond disclosures," Working Papers 338, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    3. Dimico, Arcangelo, 2024. "The Effect of Abortion Policies on Fertility and Human Capital in Sub-Saharan Africa," QBS Working Paper Series 2024/06, Queen's University Belfast, Queen's Business School.
    4. Baridhi Malakar, 2024. "Essays on Responsible and Sustainable Finance," Papers 2406.12995, arXiv.org.
    5. Clarke, Damian & Mühlrad, Hanna, 2021. "Abortion laws and women’s health," Journal of Health Economics, Elsevier, vol. 76(C).
    6. Cheng, Stephanie F. & De Franco, Gus & Lin, Pengkai, 2023. "Marijuana liberalization and public finance: A capital market perspective on the passage of medical use laws," Journal of Accounting and Economics, Elsevier, vol. 75(1).
    7. Caitlin Knowles Myers, 2022. "Confidential and legal access to abortion and contraception in the USA, 1960–2020," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(4), pages 1385-1441, October.
    8. Jones, Kelly M. & Pineda-Torres, Mayra, 2024. "TRAP’d Teens: Impacts of abortion provider regulations on fertility & education," Journal of Public Economics, Elsevier, vol. 234(C).
    9. Nina Brooks & Tom Zohar, 2021. "Out of Labor and Into the Labor Force? The Role of Abortion Access, Social Stigma, and Financial Constraints," Working Papers wp2021_2111, CEMFI.
    10. Gábor Hajdu & Tamás Hajdu, 2021. "The long-term impact of restricted access to abortion on children’s socioeconomic outcomes," PLOS ONE, Public Library of Science, vol. 16(3), pages 1-14, March.
    11. Ivanov, Ivan T. & Zimmermann, Tom & Heinrich, Nathan W., 2022. "Limits of disclosure regulation in the municipal bond market," CFR Working Papers 22-05, University of Cologne, Centre for Financial Research (CFR).
    12. Andrew F. Haughwout & Benjamin Hyman & Or Shachar, 2021. "The Option Value of Municipal Liquidity: Evidence from Federal Lending Cutoffs during COVID-19," Staff Reports 988, Federal Reserve Bank of New York.
    13. Mølland, Eirin, 2016. "Benefits from delay? The effect of abortion availability on young women and their children," Labour Economics, Elsevier, vol. 43(C), pages 6-28.
    14. Damian Clarke, 2018. "Children And Their Parents: A Review Of Fertility And Causality," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 518-540, April.
    15. Gao, Pengjie & Lee, Chang & Murphy, Dermot, 2022. "Good for your fiscal health? The effect of the affordable care act on healthcare borrowing costs," Journal of Financial Economics, Elsevier, vol. 145(2), pages 464-488.
    16. Janys, Lena & Siflinger, Bettina, 2024. "Mental health and abortions among young women: time-varying unobserved heterogeneity, health behaviors, and risky decisions," Journal of Econometrics, Elsevier, vol. 238(1).
    17. Martha J. Bailey & Jason M. Lindo, 2017. "Access and Use of Contraception and Its Effects on Women’s Outcomes in the U.S," NBER Working Papers 23465, National Bureau of Economic Research, Inc.
    18. Sarah Miller & Laura R. Wherry & Diana Greene Foster, 2023. "The Economic Consequences of Being Denied an Abortion," American Economic Journal: Economic Policy, American Economic Association, vol. 15(1), pages 394-437, February.
    19. Tran, Nhu & Uzmanoglu, Cihan, 2023. "Reprint of: COVID-19, lockdowns, and the municipal bond market," Journal of Banking & Finance, Elsevier, vol. 147(C).
    20. Fischer, Stefanie & Royer, Heather & White, Corey, 2018. "The impacts of reduced access to abortion and family planning services on abortions, births, and contraceptive purchases," Journal of Public Economics, Elsevier, vol. 167(C), pages 43-68.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:osf:socarx:7t5jz. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: OSF (email available below). General contact details of provider: https://arabixiv.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.