Economic freedom and the mispricing of single-state municipal bond closed-end funds
AbstractThe Economic Freedom of North America Index (EFI) is a measure of the state-level institutional characteristics that promote economic activity. We use this index as a proxy for the degree of local market segmentation and test the hypothesis that single-state, municipal bond closed-end fund mispricing can be partially explained by a state’s EFI value. Using panel data analysis we find that EFI is significant in explaining observed variability in fund mispricing. Copyright Springer Science+Business Media, LLC 2013
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Volume (Year): 37 (2013)
Issue (Month): 2 (April)
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- G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
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