The full transcript for this conversation and many others can be found at www.statecraft.pub.

Today we’re joined by David Schleicher. David is Professor of Property and Urban Law at Yale Law School, and an expert in local government law, land use, finance, and urban development.

I found David’s book, In a Bad State: Responding to State and Local Budget Crises, a fascinating and readable primer on municipal debt: what it is, how it grows, and how cities can face up to it.

Municipal pension funding may not sound like the most fascinating topic. I hope this conversation illustrates two things. First, how our pension systems work matters to all of us — whether or not we are enrolled in a municipal pension. Second, these questions go to the heart of how our cities are run, why they fail, and how they can be improved.

We discuss:

* Why are so many municipal pension funds in debt?

* Why New York City went bankrupt and Chicago didn’t

* Moral hazard in municipal credit

* The practice of "universal log rolls"

* How the federal government should respond to local bankruptcies

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.statecraft.pub