Publication: The euro area's common default risk: Evidence on the Commission's impact on European fiscal affairs
| dc.bibliographiccitation.firstpage | 507 | |
| dc.bibliographiccitation.issue | 4 | |
| dc.bibliographiccitation.journal | European Union Politics | |
| dc.bibliographiccitation.lastpage | 528 | |
| dc.bibliographiccitation.volume | 12 | |
| dc.contributor.author | Goldbach, Roman | |
| dc.contributor.author | Fahrholz, Christian | |
| dc.date.accessioned | 2018-11-07T08:49:09Z | |
| dc.date.available | 2018-11-07T08:49:09Z | |
| dc.date.issued | 2011 | |
| dc.description.abstract | Sovereign creditworthiness within the euro area hinges upon the credibility of the Stability and Growth Pact (SGP). We analyse whether political events that worsen the SGP's credibility result in a shared default risk premium for all euro members, therefore leading to a joint deterioration of creditworthiness. We especially examine the decisions and statements of the Commission and the Council of Economic and Finance Ministers. Analysing daily data through the 1999-2005 period with an ARMA-GARCH model, we find the Commission plays a decisive role in affecting investor evaluations, where its credibility-strengthening decisions decrease volatility and statements signalling a weakening of fiscal credibility spark uncertainty on financial markets. Our results stress the importance of creating credible fiscal institutions that preserve sovereign creditworthiness within the euro area. | |
| dc.identifier.doi | 10.1177/1465116511413950 | |
| dc.identifier.isi | 000298256600002 | |
| dc.identifier.purl | https://resolver.sub.uni-goettingen.de/purl?gs-1/13081 | |
| dc.identifier.uri | https://resolver.sub.uni-goettingen.de/purl?gro-2/21388 | |
| dc.item.fulltext | With Fulltext | |
| dc.notes.intern | Merged from goescholar | |
| dc.notes.status | zu prüfen | |
| dc.notes.submitter | Najko | |
| dc.publisher | Sage Publications Ltd | |
| dc.relation.issn | 1465-1165 | |
| dc.rights | Goescholar | |
| dc.rights.uri | https://goescholar.uni-goettingen.de/license | |
| dc.title | The euro area's common default risk: Evidence on the Commission's impact on European fiscal affairs | |
| dc.type | journal_article | |
| dc.type.internalPublication | yes | |
| dc.type.peerReviewed | yes | |
| dc.type.status | published | |
| dspace.entity.type | Publication |
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