Competition in treasury auctions
- Author(s)
- Helmut Elsinger, Philipp Schmidt-Dengler, Christine Zulehner
- Abstract
We investigate the role of competition on the outcome of Austrian Treasury auctions. Austria's EU accession led to an increase in the number of banks participating in treasury auctions. We use structural estimates of bidders' private values to examine the effect of increased competition on auction performance. We find robust evidence that bidders' surplus dropped sharply after EU accession, but less than reduced form estimates would suggest. The difference can be explained by reduced form estimates not taking into account the increase in valuations upon EU accession.
- Organisation(s)
- Department of Economics
- External organisation(s)
- Österreichische Nationalbank
- Journal
- American Economic Journal: Microeconomics
- Volume
- 11
- Pages
- 157-184
- No. of pages
- 28
- ISSN
- 1945-7669
- DOI
- https://doi.org/10.1257/mic.20170039
- Publication date
- 02-2019
- Peer reviewed
- Yes
- Austrian Fields of Science 2012
- 502021 Microeconomics
- Keywords
- ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
- Portal url
- https://ucris.univie.ac.at/portal/en/publications/competition-in-treasury-auctions(cd6e6d0e-86e5-4155-af76-3dd4f4a62676).html