Competition in treasury auctions

Author(s)
Helmut Elsinger, Philipp Schmidt-Dengler, Christine Zulehner
Abstract

We investigate the role of competition on the outcome of Austrian Treasury auctions. Austria's EU accession led to an increase in the number of banks participating in treasury auctions. We use structural estimates of bidders' private values to examine the effect of increased competition on auction performance. We find robust evidence that bidders' surplus dropped sharply after EU accession, but less than reduced form estimates would suggest. The difference can be explained by reduced form estimates not taking into account the increase in valuations upon EU accession.

Organisation(s)
Department of Economics
External organisation(s)
Österreichische Nationalbank
Journal
American Economic Journal: Microeconomics
Volume
11
Pages
157-184
No. of pages
28
ISSN
1945-7669
DOI
https://doi.org/10.1257/mic.20170039
Publication date
02-2019
Peer reviewed
Yes
Austrian Fields of Science 2012
502021 Microeconomics
Keywords
ASJC Scopus subject areas
Economics, Econometrics and Finance(all)
Portal url
https://ucrisportal.univie.ac.at/en/publications/cd6e6d0e-86e5-4155-af76-3dd4f4a62676