Explaining the Affects of Public Participation and the State of the Local Economy on Municipal Bond Elections

Abstract

Are public participation and the health of the local economy predictors of municipal bond election success? This explanatory study evaluates the impact of public participation programs and the health of the local economy on municipal bond election outcome. Thirty-eight Texas municipal bond elections between the years 2000 and 2007 are observed, controlled for demographic factors of city size, wealth, debt, credit rating, and bond size. Using the scholarly literature as a guide, formal hypotheses dealing with the impact of public participation and the local economy are developed. The hypotheses are tested using a binary logistic regression and the results did not support the hypotheses. The regression failed to reveal any significant relationship among public participation or the local economy on bond election outcomes. Hence, other factors not accounted for by the study should be explored.