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Public investment and monetary policy stance in the euro area

Burlon, Lorenzo; Locarno, Alberto; Notarpietro, Alessandro - 2017

Persistent link: https://www.econbiz.de/10011943044

Sovereign credit risk, liquidity, and ECB intervention : deus ex machina?

Pelizzon, Loriana; Subrahmanyam, Marti G.; Tomio, Davide; … - 2015 - First draft: September 2013, This draft: March 2015

This paper examines the dynamic relationship between credit risk and liquidity in the sovereign bond market in the … context of the European Central Bank (ECB) interventions. Using a comprehensive set of liquidity measures obtained from a … risk, as measured by the Italian sovereign credit default swap (CDS) spread, generally drive the liquidity of the market: a …

Persistent link: https://www.econbiz.de/10010503289

Debt maturity and the liquidity of secondary debt markets

Bruche, Max; Segura, Anatoli - 2016

Persistent link: https://www.econbiz.de/10011941207

Austerity, fiscal uncertainty, and economic growth : insights from fiscally weak EU countries

Curatola, Giuliano Antonio; Donadelli, Michael; … - 2015

Recent empirical evidence suggests that during the last years fiscally weak European countries significantly cut their R&D budgets in an effort to reduce their deficit, according to the spirit of the Fiscal Compact. We propose a general equilibrium model that endogenously captures the trade-off...

Persistent link: https://www.econbiz.de/10012061561

Does austerity pay off?

Born, Benjamin; Müller, Gernot J.; Pfeifer, Johannes - 2014

Policy makers often implement austerity measures when the sustainability of public finances is in doubt and, hence, sovereign yield spreads are high. Is austerity successful in bringing about a reduction in yield spreads? We employ a new panel data set which contains sovereign yield spreads for...

Persistent link: https://www.econbiz.de/10010463604

Austerity, fiscal volatility, and economic growth

Curatola, Giuliano; Donadelli, Michael; Gioffré, Alessandro - 2014

This paper contributes to the ongoing debate on the relationship between austerity measures and economic growth. We propose a general equilibrium model where (i) agents have recursive preferences; (ii ) economic growth is endogenously driven by investments in R&D; (iii) the government is...

Persistent link: https://www.econbiz.de/10010367469

Bank and sovereign debt risk

Darracq Pariès, Matthieu; Faia, Ester; Rodriguez … - 2012 - This draft: December 2012

long run fragility. We build a macro model with banks subject to incentive problems and liquidity risk (in the form of … liquidity based banks' runs) which provides a link between endogenous bank capital and macro and policy risk. Our banks also … invest in risky government bonds used as capital buffer to self-insure against liquidity risk. The model can replicate the …

Persistent link: https://www.econbiz.de/10010226188

Does austerity pay off?

Born, Benjamin; Müller, Gernot J.; Pfeifer, Johannes - 2015

We ask whether cuts of government consumption lower or raise the sovereign default premium. To address this question, we set up a new data set for 38 emerging and advanced economies which contains quarterly time-series observations for sovereign default premia, government consumption, and...

Persistent link: https://www.econbiz.de/10012061613

Saving Europe? : the unpleasant arithmetic of fiscal austerity in integrated economies

Mendoza, Enrique G.; Tesar, Linda L.; Zhang, Jing - 2014

Europe's debt crisis casts doubt on the effectiveness of fiscal austerity in highly-integrated economies. Closed-economy models overestimate its effectiveness, because they underestimate tax-base elasticities and ignore cross-country tax externalities. In contrast, we study tax responses to debt...

Persistent link: https://www.econbiz.de/10010463574

The output effect of fiscal consolidation plans

Alesina, Alberto; Favero, Carlo A.; Giavazzi, Francesco - 2014 - This version: October 2014

We show that the correct experiment to evaluate the effects of a fiscal adjustment is the simulation of a multi year fiscal plan rather than of individual fiscal shocks. Simulation of fiscal plans adopted by 16 OECD countries over a 30-year period supports the hypothesis that the effects of...

Persistent link: https://www.econbiz.de/10010463614