Schaltegger, Christoph A.; Weder, Martin - In: Applied Economics 46 (2014) 22, pp. 2593-2610
We use a panel of 21 OECD countries from 1970 to 2009 to investigate the effects of different fiscal adjustment strategies on long-term interest rates - a key fiscal indicator reflecting the costs of government debt service. As Europe's sovereign debt crisis has shown, governments confronted...