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Competition in Treasury Auctions


  • Helmut Elsinger
  • Philipp Schmidt-Dengler
  • Christine Zulehner


We investigate the role of competition on the outcome of Austrian Treasury auctions. Austria's EU accession led to an increase in the number of banks participating in treasury auctions. We use structural estimates of bidders' private values to examine the effect of increased competition on auction performance. We find robust evidence that bidders' surplus dropped sharply after EU accession, but less than reduced form estimates would suggest. The difference can be explained by reduced form estimates not taking into account the increase in valuations upon EU accession.

Suggested Citation

  • Helmut Elsinger & Philipp Schmidt-Dengler & Christine Zulehner, 2019. "Competition in Treasury Auctions," American Economic Journal: Microeconomics, American Economic Association, vol. 11(1), pages 157-184, February.
  • Handle: RePEc:aea:aejmic:v:11:y:2019:i:1:p:157-84
    Note: DOI: 10.1257/mic.20170039

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    References listed on IDEAS

    1. Jakub Kastl, 2011. "Discrete Bids and Empirical Inference in Divisible Good Auctions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 78(3), pages 974-1014.
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    10. Helmut Elsinger & Christine Zulehner, 2007. "Bidding Behavior in Austrian Treasury Bond Auctions," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 2, pages 109-125.
    11. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2008. "Staying in the Classroom and out of the maternity ward? The effect of compulsory schooling laws on teenage births," Economic Journal, Royal Economic Society, vol. 118(530), pages 1025-1054, July.
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    Cited by:

    1. Samuel Häfner, 2023. "Risk aversion in share auctions: Estimating import rents from TRQs in Switzerland," Quantitative Economics, Econometric Society, vol. 14(2), pages 419-470, May.
    2. Robert Clark & Decio Coviello & Jean-Fran�ois Gauthier & Art Shneyerov, 2018. "Bid Rigging and Entry Deterrence in Public Procurement: Evidence from an Investigation into Collusion and Corruption in Quebec," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 34(3), pages 301-363.

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    More about this item

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt


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