DPA Research and Policy Virtual Seminar Series – Justin Marlowe
October 28, 2020
12:00 PM - 1:00 PM
Justin Marlowe - University of Chicago
Anchoring Effects in the Public Capital Markets
Abstract: Traditional economic theory suggests an asset's past values should not affect its future value. And yet, there is evidence of "anchoring" - where past prices do affect future prices - across markets as varied as real estate, hedge funds and fine art. In this paper I document evidence of anchoring in the municipal bond market, and show those anchoring effects lead to an estimated $50 billion in additional state and local government borrowing costs each year. These results are consistent with the growing literature on behavioral public administration (see Grimmelikhuijsen, et. al. 2017, among others).
Topic: Research and Policy Seminar: Justin Marlowe
Time: Oct 28, 2020 12:00 PM Central Time (US and Canada)
Join Zoom Meeting
https://uic.zoom.us/j/81954723014?pwd=am9mWnlQdng4Z2g4V2s2bjlackNzZz09
Meeting ID: 819 5472 3014
Passcode: 12AJaA@%
Date posted
Aug 27, 2020
Date updated
Oct 26, 2020