Title

An Examination Of The Biases In Estimating The Benefit Of Debt Insurance

Abstract

This paper examines the biases in previous studies of estimating the benefit of debt insurance. We identify three possible sources of estimation biases: selection bias, marketability bias, and premium bias. Our findings indicate that both the selection bias and the marketability bias cause an underestimation of the actual benefit of bond insurance, while the premium bias results in an overestimation. Future research could benefit from this study by explicitly accounting for these estimating biases in obtaining a more accurate evaluation of the role of debt insurance in the market. Copyright © 1990, Wiley Blackwell. All rights reserved

Publication Date

1-1-1990

Publication Title

Financial Review

Volume

25

Issue

3

Number of Pages

473-486

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1111/j.1540-6288.1990.tb00808.x

Socpus ID

84987493077 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/84987493077

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