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Roe v. Rates: Reproductive Healthcare and Public Financing Costs

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  • 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
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