Thomas Krause, Danmarks Nationalbank

"Do Women Political Leaders Reduce Government Borrowing Costs? Evidence from U.S. Cities"

Abstract

This paper examines the impact of electing female mayors on the financing costs of municipal bonds. Using a regression-discontinuity-design on close mayoral elections in U.S. cities, we find that electing a female mayor results in a reduction of the bond spread by 16-39 basis points compared to electing a male mayor. This effect is not attributable to gender-based differences in fiscal policies or financial disclosures but rather to investors’ perceptions of female mayors. Female mayors receive increased media attention, and this gender effect is more pronounced in cities with a high concentration of individual municipal bond investors and lower levels of gender bias.

A joint paper with Iftekhar Hasan and Yaxuan Qi.

For more information about Thomas Krause and his interesting work - link to his website.

Contact person: Søren Hove Ravn