CREDIT CLUSTER AND CONTAGION RISK RELATED TO DISTRESSED - PowerPoint PPT Presentation

Oct 13, 2023 •126 likes •183 views

CREDIT CLUSTER AND CONTAGION RISK RELATED TO DISTRESSED MUNICIPALITIES BY RICHARD A. CICCARONE MERRITT RESEARCH SERVICES, LLC DISCUSSANT -- SHARON N. KIOKO UNIVERSITY OF WASHINGTON Chicago Public Other Public Public Schools

CREDIT CLUSTER AND CONTAGION RISK RELATED TO DISTRESSED MUNICIPALITIES BY RICHARD A. CICCARONE MERRITT RESEARCH SERVICES, LLC DISCUSSANT -- SHARON N. KIOKO UNIVERSITY OF WASHINGTON
Chicago� Public Other� Public� Public� Schools Higher� School Ed Districts Moral� Cook� Obligation� County Econ� Dev Illinois McPier� &� Other� Exposition Counties RTA Chicago Medicaid� Other� Providers Cities
STATE COUNTY? METRO AREA? METRO AREA CITY TOWN SPECIAL SCHOOL CITY TOWN FIRE DISTRICT DISTRICT DISTRICT SPECIAL SCHOOL FIRE DISTRICT COUNTY DISTRICT DISTRICT SPECIAL SCHOOL DISTRICT DISTRICT
TOWN B TOWN A CITY B METRO AREA CITY C CITY A
 Focus  Cluster and contagion risk  Interdependencies (e.g., economic base, intergovernmental fiscal relationships)  Contribution  Substantial improvement over our current understanding of financial condition analysis  Model can be used by local governments to identify interdependencies and manage contagion risk  States could manage risk exposure (e.g., state guaranteed tax-supported debt, pension liabilities)  Limitation(s)  Defining the relevant economic base and fiscal interdependencies  Model specification particularly on the fiscal interdependencies  Access to good data  Broader application may be limited (non-regional governments, small rural communities)

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