We use a panel of euro area countries to assess the determinants of long-term sovereign bond yield spreads over the …

We use a panel of euro area countries to assess the determinants of long-term sovereign bond yield spreads over the …

rising concerns about the Eurozone future and the skepticism regarding the radical shifts in few EMU countries' interest … studies the determinants of bond yield differentials in the Eurozone and differs in many ways from the previous works. First … of all, we use longer data sets, which cover the recent Eurozone crisis events. Then, we use a new risk aversion proxy …