Bond pricing in the biggest city bankruptcy in history: The effects of state emergency management laws on default risk

RETRACTED ARTICLE: Applying blockchain technology in the corporate bond model for default risk assessment under the marketization principle

“…At the same time, the consensus mechanism in the BC can provide users with a unified dataset, reducing the error data and obtaining the real-time data as much as possible. Transaction participants can change the consensus mechanism according to their actual needs, ensuring the flexibility of asset transactions (Murphy 2018 ; Lomoro et al 2020 ).…”

[Retracted] Research on Digital Economy of Intelligent Emergency Risk Avoidance in Sudden Financial Disasters Based on PSO‐BPNN Algorithm

“…Most researches on disaster prediction and early warning are aimed at different industries, which provide some prediction basis for disaster prediction and perception [ 3 ]. Literatures [ 4 , 5 ], starting from the responsibilities of emergency management organizations, discuss that, only by formulating corresponding laws, regulations, and standards can emergency managers perform their responsibilities well and emphasize the importance of emergency mechanism. Literature [ 6 ] thinks that emergency management is to maintain the normal operation of urban functions in the face of natural disasters.…”

In Service of Creditors: Emergency Financial Management and Poison Water in Flint, Michigan

“…The Vanguard Long-Term Tax-Exempt Fund (Admiral Shares), which represents a portfolio of state and local government obligations across the U.S. whose returns would be exogenous to the Flint water crisis, is used for the market proxy m in (2). Although a bond index could alternatively serve as a market proxy as in Denison's (2000) study of municipal funds, Murphy (2018) has more recently suggested using the former fund in event studies of the returns on specific municipal bonds. Utilization of this proxy in the computation of the abnormal returns ej in (2) enables factoring out marketwide effects on municipals, such as those related to aggregate U.S. economic growth, inflation, and national credit conditions affecting real interest rates, as well as special tax issues affecting tax-exempt bonds.…”

“…The events in Flint provide a compelling indication of the urgency in obtaining appropriate funding for the large infrastructure investments needed to provide safe potable water in the U.S., and novel forms of municipal financing that better align the interests of creditors, municipalities, administrators, and the people are suggested for that purpose. Murphy (2018) has previously shown that State-appointed managers tasked with improving the financial health of a particular political subdivision can benefit the existing creditors of that particular municipality. However, a common motivation for State intervention in local financial affairs is to enhance the creditworthiness of the local governments statewide (Gao, Lee, and Murphy, 2019).…”

“…However, a common motivation for State intervention in local financial affairs is to enhance the creditworthiness of the local governments statewide (Gao, Lee, and Murphy, 2019). Murphy (2018) found evidence that the fiscal discipline and the associated draconian cuts to municipal services imposed by an emergency financial manager tend to negatively impact the credit of local governments economically intertwined with a State-managed municipality and do not reduce the overall yields on the obligations of the State itself and its other political subdivisions. Thus, one of the purposes of emergency financial management laws, which are intended to enhance the overall credit of the State and its local governments (Spiotto, 2013), does not seem to be fulfilled by that method of resolving municipal fiscal crises.…”