Do financial markets reward government spending efficiency?
Autor(a) principal: | |
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Data de Publicação: | 2021 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.5/21167 |
Resumo: | We link governments’ spending efficiency scores, to sovereign debt assessments made by financial markets´, more specifically by three rating agencies (Standard & Poors, Moody´s and Fitch). Public efficiency scores are computed via data envelopment analysis. Then, we rely notably on ordered response models to estimate the response of sovereign ratings to changes in efficiency scores. Covering 34 OECD countries over the period 2007-2018, we find that increased public spending efficiency is rewarded by financial markets via higher sovereign debt ratings. In addition, higher inflation and government indebtedness lead to sovereign rating downgrades, while higher foreign reserves contribute to rating upgrades. |
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Do financial markets reward government spending efficiency?government spending efficiencyDEApanel analysisordered probit (logit)sovereign ratingsrating agenciesWe link governments’ spending efficiency scores, to sovereign debt assessments made by financial markets´, more specifically by three rating agencies (Standard & Poors, Moody´s and Fitch). Public efficiency scores are computed via data envelopment analysis. Then, we rely notably on ordered response models to estimate the response of sovereign ratings to changes in efficiency scores. Covering 34 OECD countries over the period 2007-2018, we find that increased public spending efficiency is rewarded by financial markets via higher sovereign debt ratings. In addition, higher inflation and government indebtedness lead to sovereign rating downgrades, while higher foreign reserves contribute to rating upgrades.ISEG - REM - Research in Economics and MathematicsRepositório da Universidade de LisboaAfonso, AntónioJalles, João TovarVenâncio, Ana2021-03-23T14:58:18Z2021-032021-03-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/21167engAfonso, António, João Tovar Jalles e Ana Venâncio (2021). "Do financial markets reward government spending efficiency?". Instituto Superior de Economia e Gestão – REM Working paper nº 0166 – 20212184-108Xinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-06T14:50:36Zoai:www.repository.utl.pt:10400.5/21167Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:05:48.178015Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Do financial markets reward government spending efficiency? |
title |
Do financial markets reward government spending efficiency? |
spellingShingle |
Do financial markets reward government spending efficiency? Afonso, António government spending efficiency DEA panel analysis ordered probit (logit) sovereign ratings rating agencies |
title_short |
Do financial markets reward government spending efficiency? |
title_full |
Do financial markets reward government spending efficiency? |
title_fullStr |
Do financial markets reward government spending efficiency? |
title_full_unstemmed |
Do financial markets reward government spending efficiency? |
title_sort |
Do financial markets reward government spending efficiency? |
author |
Afonso, António |
author_facet |
Afonso, António Jalles, João Tovar Venâncio, Ana |
author_role |
author |
author2 |
Jalles, João Tovar Venâncio, Ana |
author2_role |
author author |
dc.contributor.none.fl_str_mv |
Repositório da Universidade de Lisboa |
dc.contributor.author.fl_str_mv |
Afonso, António Jalles, João Tovar Venâncio, Ana |
dc.subject.por.fl_str_mv |
government spending efficiency DEA panel analysis ordered probit (logit) sovereign ratings rating agencies |
topic |
government spending efficiency DEA panel analysis ordered probit (logit) sovereign ratings rating agencies |
description |
We link governments’ spending efficiency scores, to sovereign debt assessments made by financial markets´, more specifically by three rating agencies (Standard & Poors, Moody´s and Fitch). Public efficiency scores are computed via data envelopment analysis. Then, we rely notably on ordered response models to estimate the response of sovereign ratings to changes in efficiency scores. Covering 34 OECD countries over the period 2007-2018, we find that increased public spending efficiency is rewarded by financial markets via higher sovereign debt ratings. In addition, higher inflation and government indebtedness lead to sovereign rating downgrades, while higher foreign reserves contribute to rating upgrades. |
publishDate |
2021 |
dc.date.none.fl_str_mv |
2021-03-23T14:58:18Z 2021-03 2021-03-01T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.5/21167 |
url |
http://hdl.handle.net/10400.5/21167 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Afonso, António, João Tovar Jalles e Ana Venâncio (2021). "Do financial markets reward government spending efficiency?". Instituto Superior de Economia e Gestão – REM Working paper nº 0166 – 2021 2184-108X |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
ISEG - REM - Research in Economics and Mathematics |
publisher.none.fl_str_mv |
ISEG - REM - Research in Economics and Mathematics |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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