Home Subscribe Login Contact Us Search Journal Articles PFM RSS Feed

PFM Articles Search Journal Articles

In Service of Creditors: Emergency Financial Management and Poison Water in Flint, Michigan

Author: AUSTIN MURPHY
Published in PFM, Vol. 19 No. 3

This case study of the Flint water crisis demonstrates the effects that can result from focusing on the task of improving the creditworthiness of a financially distressed municipality with infrastructure problems. Empirical findings, which incorporate an event study of the impacts on Flint's municipal bondholders, indicate that the creditors of a political subdivision administered by a State appointee may be helped through infliction of a humanitarian crisis while the costs are borne by the State itself and others. Novel forms of financing infrastructure investments are suggested to help resolve the trade-offs between government fiscal discipline and service to the governed people.

Subscribers: Login to read this article

Guests: Subscribe to PFM, or purchase individual article access for $10.
The article is not available for automatic download. We will email the article to you as a PDF file upon receiving your payment, typically within 24 hours.