Fall 2019 - 59355 - PA 388L - Advanced Topics in Management

Financing State and Local Government

Description of course: 

This course is an advanced graduate seminar that explores the various ways state and local governments in the United States raise capital for their infrastructure and to a lesser extent their operating budget needs.  The course is presented mainly from the sell-side of the financial markets (i.e., “issuers” of debt instruments rather than “buyers”).  The course is grounded in modern financial and economic theories.  Students are introduced to the role and mechanics of the municipal securities market, the primary financial market used by US subnational governments to meet their financings needs.  Students will learn how to analyze sophisticated bond credits and develop innovative financing techniques. Students will acquire the ability to create financial instruments and analyze capital financing decisions. The objectives of the course are achieved by using case studies and practical exercises that complement the assigned readings and class discussions. 

Requirements and Expectations: 

This course involves a mix of readings, lectures, discussions, and in-class exercises. The class session format will include lectures, student discussion/presentations and small group exercises. The lectures, discussions and group exercises are designed to elaborate on and extend key points in the conceptual material, and clarify steps described in the applied material.   Grades will be based on 3 long-form individual exercises, a final exam, an individual credit analysis/presentation, and class participation.  


Due to its technical nature, students should expect a rigorous reading workload in this course.  The expected required textbooks for purchase are:

Craig L. Johnson, Martin J. Luby and Tima T. Moldogaziev. 2014. State and Local Financial Instruments: Policy Changes and Management. Studies in Fiscal Federalism and State-Local Finance. Edward Elgar. (Cheltenham, UK * Northampton, MA, USA.)
Securities Industry and Financial Markets Association (SIFMA). 2011. The Fundamentals of Municipal Bonds 6th edition (Wiley)