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Economic freedom and the mispricing of single-state municipal bond closed-end funds

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  • Samuel Jones

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  • Michael Stroup
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    Abstract

    The 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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    File URL: http://hdl.handle.net/10.1007/s12197-011-9174-y
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    Bibliographic Info

    Article provided by Springer in its journal Journal of Economics and Finance.

    Volume (Year): 37 (2013)
    Issue (Month): 2 (April)
    Pages: 173-187

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    Handle: RePEc:spr:jecfin:v:37:y:2013:i:2:p:173-187

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    Related research

    Keywords: Single-State Municipal Closed-End Fund; Economic Freedom Index; G23;

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