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On Creditor Seniority and Sovereign Bond Prices in Europe
Steinkamp, Sven; Westermann, Frank - CESifo - 2012
The recent increase of interest rate spreads in Europe and their apparent detachment from underlying fundamental variables has generated a debate on multiple equilibria in the sovereign bond market (see De Grauwe and Ji (2012)). We critically evaluate this hypothesis, by pointing towards an...
Persistent link: https://www.econbiz.de/10010877653
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Self-Fulfilling Crises in the Eurozone. An Empirical Test
Grauwe, Paul De; Ji, Yuemei - CESifo - 2012
We test the hypothesis that the government bond markets in the Eurozone are more fragile and more susceptible to self … countries in the Eurozone during 2010-11 was disconnected from underlying increases in the debt to GDP ratios and fiscal space … argue that this can drive member countries of the Eurozone into bad equilibria. We also find evidence that after years of …
Persistent link: https://www.econbiz.de/10010877763
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A Fragile Eurozone in Search of a Better Governance
Grauwe, Paul De - CESifo - 2011
self-fulfilling multiple equilibria arise.I analyze the implications of this fragility for the governance of the Eurozone …
Persistent link: https://www.econbiz.de/10009020784
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Banking and Debt Crisis in Europe: The Dangerous Liaisons?
Candelon, Bertrand; Palm, Franz - CESifo - 2010
The potential mutation of the Sub-Prime banking crisis into a sovereign debt one in Euro area countries is investigated. After reviewing the criteria used to measure the debt vulnerability, the balance sheet approach (BSA) is presented in order to illustrate the potential connections between...
Persistent link: https://www.econbiz.de/10008583677
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The Eurozone Needs Exit Rules
Fahrholz, Christian; Wójcik, Cezary - CESifo - 2012
This paper argues that the key issue for defining and solving the Eurozone’s (EZ) difficulties lies in readjusting the …
Persistent link: https://www.econbiz.de/10010553271
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Fiscal Spillovers in the Euro Area
Caporale, Guglielmo Maria; Girardi, Alessandro - CESifo - 2011
This paper analyses the dynamic effects of fiscal imbalances in a given EMU member state on the borrowing costs of other countries in the euro area. The estimation of a multivariate, multi-country time series model (specifically a Global VAR, or GVAR) using quarterly data for the EMU period...
Persistent link: https://www.econbiz.de/10009391724
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Status Concerns as a Motive for Crime?
Baumann, Florian; Friehe, Tim - CESifo - 2013
This paper analyzes the implications of potential offenders caring about their relative status. We establish that subjects' status concerns can result in multiple-equilibrium crime rates and may modify the standard comparative-statics results regarding how the crime rate changes in response to a...
Persistent link: https://www.econbiz.de/10010877885
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Self-Confirming Immigration Policy
Giordani, Paolo E.; Ruta, Michele - CESifo - 2012
We study immigration policy in a small receiving economy under self-selection of migrants. We show that a non-discriminatory immigration policy choice affects and is affected by the migratory decisions of skilled and unskilled foreign workers. From this interaction multiple equilibria may arise,...
Persistent link: https://www.econbiz.de/10010535635
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Journey into the Unknown? Economic Consequences of Factor Market Integration under Increasing Returns to Scale
Schäfer, Andreas; Steger, Thomas - CESifo - 2011
What are the dynamic consequences of comprehensive integration shocks? The answer to this question appears all but trivial. We set up a dynamic macroeconomic model of a small open economy where both capital and labor are mobile and there are increasing returns to scale at the aggregate level....
Persistent link: https://www.econbiz.de/10009645233
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Monopolistic Competition, Efficiency Wages and Perverse Effects of Demand Shock
Malley, Jim; Molana, Hassan - CESifo - 2001
In this paper we construct a stylised general equilibrium macromodel to show that demand led expansions may have unexpected effects when market imperfections lead to changes in labour productivity. We find some empirical support, from a number of European countries, for the main predictions of...
Persistent link: https://www.econbiz.de/10005181466