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
Elsinger, Helmut, Philipp Schmidt-Dengler, and Christine Zulehner.
"Competition in Treasury Auctions."
American Economic Journal: Microeconomics,
Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
National Debt; Debt Management; Sovereign Debt