Pavlova, Anna (contributor); Rigobón, Roberto (contributor) - 2007
economies (Table 1). This excess comovement during crises, known as
contagion, is an important economic phenomenon that merits a …-country correlations of sovereign bond yields following
credit rating changes—events that do not reveal any economic news.
5
For instance … portfolio constraints, analyze its solution
in the unconstrained case.
2.1. The Economic Setting
We consider a continuous …