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008			190323b xxu||||| |||| 00| 0 eng d
022			_a0304-405X
245			_aTax distortions and bond issue pricing / by Mattia Landoni _cMattia Landoni
260			_aAmsterdam _bElsevier _cAugust 2018
300			_aPages 382-393
440			_aJournal of Financial Economics _v129 (2) _x0304-405X
500			_aAbstract Original issue premium (OIP) bonds are the norm in the US tax-exempt market but very rare in the taxable market. A tax subsidy helps explain this disparity. Unlike bonds issued at par or discount, the price of OIP bonds can fall and yet remain above par, providing secondary market buyers with more tax-exempt coupon and less taxable market discount gain. The subsidy for OIP bonds explains additional, previously undocumented empirical facts. In a calibration exercise, the subsidy’s expected cost to the U.S. Treasury is estimated at $1.7 billion per year.
690			_aTax exempt
690			_aTax distortions
690			_aTax arbitrage
690			_aIssue price
942			_2lcc _cSE
999			_c361367 _d361367