Roe v. Rates: Reproductive Healthcare and Public Financing Costs
60 Pages Posted: 13 Sep 2023 Last revised: 16 Jan 2025
Date Written: August 31, 2023
Abstract
After the U.S. Supreme Court overturned Roe v. Wade, states enacting near-total abortion bans experience an increase in municipal bond yields relative to states with preexisting laws protecting abortion. The effects are stronger in counties with higher ex-ante utilization of abortion services, sharper ex-post declines in access to abortion, greater public support for abortion rights, and higher dependence on female labor force participation. Using the stock market’s reaction to abortion bans following the overturning of Roe v. Wade and the staggered state-level adoption of laws restricting abortion providers in earlier years, we identify negatively impacted firms and reduced net in-migration as key factors underlying the rise in yields. Together, our results highlight the importance of reproductive healthcare, in particular abortion policies, in driving public financing costs.
Keywords: Public finance, Municipal bonds, Reproductive healthcare, TRAP laws
JEL Classification: H74, G12, I18
Suggested Citation: Suggested Citation
Lu, Runjing and Ye, Zihan, Roe v. Rates: Reproductive Healthcare and Public Financing Costs (August 31, 2023). Available at SSRN: https://ssrn.com/abstract=4557423
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