The 2007 global crisis triggered a severe sovereign debt crisis in Portugal, which led to the need to comply with an Economic Adjustment Programme (EAP) based, among other pillars, on fiscal consolidation. According to our literature review, the economic environment in which the adjustment...

Introducing uncertainty under fiscal sustainability conditions for the public debt provides a framework for analyzing debt dynamics. Such methods are commonly used for fiscal projections, but our aim here is retrospective; we evaluate the sudden jump in the Hungarian public debt following the...

This paper explores the implications of fiscal rules and independent fiscal institutions (IFIs) on sovereign risk. We employ a dynamic panel model for a sample composed of 24 countries members of the European Union over the period 2007-2019 and document that fiscal rules contain sovereign...

This paper explores the implications of fiscal rules and independent fiscal institutions (IFIs) on sovereign risk. We document that fiscal rules contain sovereign default risk in 24 countries members of the European Union measured by the credit default swap (CDS) spreads. IFIs, through...

This paper develops a dynamic infinite-horizon model with two layers of governments to study theoretically and quantitatively how fiscal decentralization affects local and central government debt accumulation and spending. In the model, the central government makes transfers to local governments...