Competition in treasury auctions

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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.

Original languageEnglish
Pages (from-to)157-184
Number of pages28
JournalAmerican Economic Journal: Microeconomics
Issue number1
Publication statusPublished - Feb 2019

Austrian Fields of Science 2012

  • 502021 Microeconomics


  • Auctions
  • Comparative or joint analysis of fiscal and monetary policy; stabilization; treasury policy
  • Banks; depository institutions; micro finance institutions; mortgages

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