Fiscal Discipline as a Driver of Sovereign Risk Spread in the European Union Countries.

Kód výsledku v IS VaVaI

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Výsledek na webu

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DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Fiscal Discipline as a Driver of Sovereign Risk Spread in the European Union Countries.

Popis výsledku v původním jazyce

The aim of the paper is to verify if stronger fiscal discipline effects sovereign risk premium in the European Union member states in a period 1990-2011. We undertand fiscal discipline as a compliance with targets for budgetary aggregates. We performed estimation on three different panels (EU24, EURO, non EURO) with the goal to find differences between euro and non-euro countries We used next variables for testing the impact on sovereign bond spread: German Bunds' interest, budget balance, debt and thefiscal rules index. Correlation analysis identified the strong correlation between sovereign yield spread and budget balance. This is the common trend for all panels. Likewise, fiscal rules index is strong correlated with spread and it is more noticeablein EURO panel. The improvement of fiscal discipline reduces sovereign yield spreads. The biggest difference between panels was found for the debt and German interest rate. These variables are strong correlated only in EURO countries. Sur

Název v anglickém jazyce

Fiscal Discipline as a Driver of Sovereign Risk Spread in the European Union Countries.

Popis výsledku anglicky

The aim of the paper is to verify if stronger fiscal discipline effects sovereign risk premium in the European Union member states in a period 1990-2011. We undertand fiscal discipline as a compliance with targets for budgetary aggregates. We performed estimation on three different panels (EU24, EURO, non EURO) with the goal to find differences between euro and non-euro countries We used next variables for testing the impact on sovereign bond spread: German Bunds' interest, budget balance, debt and thefiscal rules index. Correlation analysis identified the strong correlation between sovereign yield spread and budget balance. This is the common trend for all panels. Likewise, fiscal rules index is strong correlated with spread and it is more noticeablein EURO panel. The improvement of fiscal discipline reduces sovereign yield spreads. The biggest difference between panels was found for the debt and German interest rate. These variables are strong correlated only in EURO countries. Sur

Druh

D - Stať ve sborníku

CEP obor

AH - Ekonomie

OECD FORD obor

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Projekt

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Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2013

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

Proceedings of the 22nd IBIMA Conference Creating Global Competitive Economies: 2020 Vision Planning Implementation

ISBN

978-0-9860419-1-4

ISSN

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e-ISSN

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Počet stran výsledku

12

Strana od-do

793-804

Název nakladatele

IBIMA

Místo vydání

Rome

Místo konání akce

Rome

Datum konání akce

13. 11. 2013

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

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