Do fiscal rules lower government financing costs?
Autor(a) principal: | |
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Data de Publicação: | 2017 |
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/10400.5/15988 |
Resumo: | We assess the effect of fiscal rules on sovereign bond yields over the short and medium-term, for 34 advanced countries and 21 emerging market economies, over the period 1980-2016. Our results, based on impulse response functions, show that the dynamic impact of fiscal rules on bond yields is negative and statistically significant, implying lower government’s borrowing costs. This is a result stemming essentially from the advanced economies subsample. Moreover, in times of recession, a fiscal rule leads financial markets to reduce the risk premia on government bonds. Finally, when it comes to design features of fiscal rules, independent monitoring of compliance to the rule also reduces sovereign yields. |
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Do fiscal rules lower government financing costs?fiscal rulessovereign yieldsfinancing costsimpulse response functionslocal projectionWe assess the effect of fiscal rules on sovereign bond yields over the short and medium-term, for 34 advanced countries and 21 emerging market economies, over the period 1980-2016. Our results, based on impulse response functions, show that the dynamic impact of fiscal rules on bond yields is negative and statistically significant, implying lower government’s borrowing costs. This is a result stemming essentially from the advanced economies subsample. Moreover, in times of recession, a fiscal rule leads financial markets to reduce the risk premia on government bonds. Finally, when it comes to design features of fiscal rules, independent monitoring of compliance to the rule also reduces sovereign yields.ISEG - REM - Research in Economics and MathematicsRepositório da Universidade de LisboaAfonso, AntónioJalles, João2018-09-27T14:16:39Z2017-112017-11-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/15988engAfonso, António e João Jalles (2017). "Do fiscal rules lower government financing costs?". Instituto Superior de Economia e Gestão – REM Working paper nº 015 - 20172184-108Xinfo: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:RCAAP2023-03-06T14:45:51Zoai:www.repository.utl.pt:10400.5/15988Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:01:30.224411Repositório 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 fiscal rules lower government financing costs? |
title |
Do fiscal rules lower government financing costs? |
spellingShingle |
Do fiscal rules lower government financing costs? Afonso, António fiscal rules sovereign yields financing costs impulse response functions local projection |
title_short |
Do fiscal rules lower government financing costs? |
title_full |
Do fiscal rules lower government financing costs? |
title_fullStr |
Do fiscal rules lower government financing costs? |
title_full_unstemmed |
Do fiscal rules lower government financing costs? |
title_sort |
Do fiscal rules lower government financing costs? |
author |
Afonso, António |
author_facet |
Afonso, António Jalles, João |
author_role |
author |
author2 |
Jalles, João |
author2_role |
author |
dc.contributor.none.fl_str_mv |
Repositório da Universidade de Lisboa |
dc.contributor.author.fl_str_mv |
Afonso, António Jalles, João |
dc.subject.por.fl_str_mv |
fiscal rules sovereign yields financing costs impulse response functions local projection |
topic |
fiscal rules sovereign yields financing costs impulse response functions local projection |
description |
We assess the effect of fiscal rules on sovereign bond yields over the short and medium-term, for 34 advanced countries and 21 emerging market economies, over the period 1980-2016. Our results, based on impulse response functions, show that the dynamic impact of fiscal rules on bond yields is negative and statistically significant, implying lower government’s borrowing costs. This is a result stemming essentially from the advanced economies subsample. Moreover, in times of recession, a fiscal rule leads financial markets to reduce the risk premia on government bonds. Finally, when it comes to design features of fiscal rules, independent monitoring of compliance to the rule also reduces sovereign yields. |
publishDate |
2017 |
dc.date.none.fl_str_mv |
2017-11 2017-11-01T00:00:00Z 2018-09-27T14:16:39Z |
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/10400.5/15988 |
url |
http://hdl.handle.net/10400.5/15988 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Afonso, António e João Jalles (2017). "Do fiscal rules lower government financing costs?". Instituto Superior de Economia e Gestão – REM Working paper nº 015 - 2017 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 |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
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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1799131104019480576 |