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The study examines the determinants of the adoption of bond banks. It draws on the intergovernmental and collaboration scholarship and uses panel data from 26 states over 40-time periods and conditional fixed effects regression. The study findings suggest that opportunities for collaboration, the strength of existing collaboration, the motivation to reduce transaction costs, and financial and economic conditions influence bond banks’ adoption. The study findings contribute to the scholarship that promotes government efficiency through joint venture activities that characterize bond banks.

Political Fragmentation, Interlocal Expenditures, and the Adoption of Bond Banks for Joint Debt Issue