AN EMPIRICAL ANALYSIS OF MUNICIPAL BOND RATINGS IN VIRGINIA

Abstract

The paper investigates the determinants of municipal bond ratings in Virginia using an ordered‐probit analysis. We find that economic factors are the key determinants of municipal bond ratings in the State. Our ordered‐probit model correctly predicts approximately 70% of the actual sample which is not subject to sample selection bias.

Citation

Badu, Y.A. and Daniels, K.N. (1997), "AN EMPIRICAL ANALYSIS OF MUNICIPAL BOND RATINGS IN VIRGINIA", Studies in Economics and Finance, Vol. 17 No. 2, pp. 81-97. https://doi.org/10.1108/eb028733