The impact of fiscal rules on sovereign risk premia:International evidence

Author: John Thornton, Chrysovalantis Vasilakis
Publisher: Elsevier BV

ABOUT BOOK

We examine whether adopting a numerical fiscal rule framework to guide fiscal policy helps reduce sovereign risk premia in a sample of advanced and developing countries for 1985–2012. We address the self-selection problem of policy adoption by applying propensity score matching methods. The results suggest that adopting fiscal rules reduces sovereign risk premia

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