Importance of fiscal discipline for sovereign risk spread

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F47813059%3A19520%2F14%3A%230002733" target="_blank" >RIV/47813059:19520/14:#0002733 - 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
Importance of fiscal discipline for sovereign risk spread
Original language description
The price of government bonds reflects market confidence in governments' commitment towards sustainable fiscal policies. The aim of the paper is to examine the importance of fiscal discipline for sovereign risk spread in the European Union member statesin a period 1990-2011 and verify if stronger fiscal discipline reduces sovereign risk premium. The empirical estimation is performed for 24 EU member states, we apply estimation on three different panels (EU24, EURO, nonEURO). Next variables are used fortesting the impact on sovereign risk spread: German Bunds' interest, budget balance to GDP, debt to GDP, GDP growth, the fiscal rules index and inflation. Granger pairwise tests and cross correlation are applied as basic methods of research. The analysis identified the biggest importance of budget balance for sovereign yield spread in all panels, the importance of other variables varies in individual panels.
Czech name
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Czech description
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Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2014
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
Monetary, banking and financial issues in Central and Eastern EU member countries: How can Central and Eastern EU members overcome the current economic crisis?
ISBN
978-606-714-020-0
ISSN
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e-ISSN
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Number of pages
9
Pages from-to
406-414
Publisher name
EDITURA UNIV ALEXANDRU IOAN CUZA IASI
Place of publication
Iasi
Event location
Alexandru Ioan Cuza University of Iaşi
Event date
Apr 10, 2014
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
000346751900057

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