Do fiscal variables matter for sovereign risk spread?

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F47813059%3A19520%2F12%3A%230002149" target="_blank" >RIV/47813059:19520/12:#0002149 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Result language
angličtina
Original language name
Do fiscal variables matter for sovereign risk spread?
Original language description
The paper examines impact of fiscal policy on financial markets. In recent years, differences in government bond yields have sharply increased in the euro area. Part of this increase can be attributed to developments in public debt and contingent liabilities related to the banking sector. Price of government bonds reflects market confidence in governments' commitment towards sustainable fiscal policies. Fiscal governance has an impact on the sovereign yield spreads by reducing the probability of default. This has two effects on the sovereign spreads: first, it determines the standard risk premium that compensates for the possibility of default no matter what the extent of risk aversion is. Second, it determines the variance of the payments from the risky bond. The aim of the paper is to analyze impact of fiscal variables on sovereign risk spread in selected EU member states during 1990-2010. Panel regression is used as a basic method of research.
Czech name
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Czech description
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Project
<a href="/en/project/GAP403%2F11%2F2073" target="_blank" >GAP403/11/2073: Procyclicality of financial markets, asset price bubbles and macroprudential regulation</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year
2012
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
Political Economy of Eurozone Crisis: Is Fiscal Union Feasible?
ISBN
978-80-87106-62-4
ISSN
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e-ISSN
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Number of pages
10
Pages from-to
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Publisher name
Martin Stříž Publishing
Place of publication
Bučovice
Event location
Brno
Event date
Jan 1, 2012
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
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