WASHINGTON — A National Bureau of Economic Research study has concluded that while Build America Bonds have succeeded in their mission to lower financing costs for state and local governments, traditional tax-exempt bonds still offer more enticing after-tax yields to individual investors.

On average, state and local governments saved 54 basis points per year by issuing BABs instead of tax-exempts, according to the new study. It analyzed 6,177 different BAB transactions totaling $63.4 billion that were issued from April through December 2009 and compared them to the 95,233 tax-exempt deals totaling $332.2 billion that were issued during the same period.

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