State Infrastructure Banks and Intergovernmental Subsidies for Local Transportation Investment

19 Pages Posted: 2 Dec 2008

See all articles by Juita-Elena (Wie) Yusuf

Juita-Elena (Wie) Yusuf

Old Dominion University - Center for Urban Studies & Public Administration

Gao Liu

affiliation not provided to SSRN

Abstract

This study reviews State Infrastructure Banks (SIBs) as an innovative financing mechanism for federal and state governments to support transportation financing for local governments, and determines the cost savings realized by local governments from receiving SIB loans rather than financing through the municipal bond market. The study finds that SIBs provide a mechanism through which local governments receive subsidized loans for their transportation investments. With the Ohio SIB, localities realized average borrowing cost savings between 34 and 184 basis points. Under the worst- and best-case scenarios, 83 and 98 percent of projects, respectively, benefited from lower borrowing costs.

Suggested Citation

Yusuf, Juita-Elena (Wie) and LIU, GAO, State Infrastructure Banks and Intergovernmental Subsidies for Local Transportation Investment. Public Budgeting & Finance, Vol. 28, Issue 4, pp. 71-89, Winter 2008. Available at SSRN: https://ssrn.com/abstract=1307343 or http://dx.doi.org/10.1111/j.1540-5850.2008.00917.x

Juita-Elena (Wie) Yusuf (Contact Author)

Old Dominion University - Center for Urban Studies & Public Administration ( email )

Norfolk, VA 23529
United States
757-683-4437 (Phone)
757-683-4886 (Fax)

HOME PAGE: https://www.odu.edu/business/departments/sps

GAO LIU

affiliation not provided to SSRN

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