This dissertation deals with three issues of public debt that emerged during the recent financial and economic crisis in the Eurozone. It first investigates the question whether the interest rates on government bonds in a monetary union are determined by economic fundamentals or market...

We analyze the determinants of interest rates on long-term government bonds within the Eurozone to assess whether the recent divergence in interest rates is attributable to changes in common economic fundamentals. First, we show that the panel approach, mostly employed by existing literature on...