Are other postemployment obligations impounded in borrowing costs for state governments?

Attempts to investigate whether unfunded post‐employment obligations are recognized in the borrowing costs for new state government bond issues. Suggest that such evidence would lend insight into the relationship between the unfunded liability for retiree healthcare costs and borrowing costs, which may have important implications for policy makers. Gives an overview of state retiree healthcare benefits and covers prior literature before providing substantial details of the methodology used. Results suggest that such liabilities are taken into account.