Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5069259 | Finance Research Letters | 2017 | 5 Pages |
Abstract
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.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
John Thornton, Chrysovalantis Vasilakis,