Auction Mechanisms and Treasury Revenue: Evidence from the Chinese Experiment

Barbosa, Klenio and De Silva, Dakshina and Yang, Liyu and Yoshimoto, Hisayuki (2022) Auction Mechanisms and Treasury Revenue: Evidence from the Chinese Experiment. American Economic Journal: Microeconomics, 14 (4). pp. 394-419. ISSN 1945-7669

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Abstract

This paper exploits a large-size auction experiment conducted by two Chinese Government Treasury security issuers-the Chinese Development Bank and the Export-Import Bank-to investigate whether Treasury securities should be sold through uniform or discriminatory auction mechanisms. Based on the outcomes of more than 300 Treasury securities issued through an alternating auction-rule market experiment, we find that yield rates of the two auction formats are not statistically different. Further, these estimates indicate that there is no significant economic difference in terms of revenue between the two auction mechanisms. This result is robust across different bond-yield rate measurements and participation behavior.

Item Type:

Journal Article

Journal or Publication Title:

American Economic Journal: Microeconomics

Additional Information:

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Uncontrolled Keywords:

/dk/atira/pure/subjectarea/asjc/2000

Subjects:

?? economics, econometrics and finance(all) ??

Departments:

Lancaster University Management School > Economics

ID Code:

153756

Deposited By:

ep_importer_pure

Deposited On:

13 Apr 2021 10:35

Refereed?:

Yes

Published?:

Published

Last Modified:

10 Nov 2024 01:20

URI:

https://eprints.lancs.ac.uk/id/eprint/153756