We analyse the government bond yield spread vis-à-vis Germany for 10 countries in the euro area for the period 1991 to 2009. Our results suggest a positive relationship between the marginal impact of government debt on the spread and foreign ownership of the government debt of the country...

This note presents new estimates of a probit model for the debt rescheduling, using a sample of 65 countries over the period 1984-93. Apart from economic variables, a whole range of indicators for political instability are included in the model as explanatory variables. It turns out, that none...

The relationship between government debt and the maturity of government debt is analysed for eight OECD countries. It is found that the negative relationship between debt and effective maturity as reported by Missale and Blanchard (1994) for Ireland and Italy can also be found for some other...

We investigate whether international fund flows are pro-or counter-cyclical by employing a concordance index. International fund flows are investments in bond and equity markets by institutional investors, such as mutual funds, exchange traded funds, closed-end funds and hedge funds. We find...

Long-run data for the USA is used to examine whether the inflation adjustment of the government budget deficit as proposed by Eisner and Pieper makes a difference in assessing the impact of fiscal policy on economic growth. Using Vector Autoregressions (VAR) it is found that both the inflation...

As in many other OECD countries, government investment expressed as share of GDP has decreased in The Netherlands. Using the concept of Granger causality, we test in a bivariate vector autoregression framework various hypothesis that have been put forward to explain this decline. It is concluded...

This article places the data revision model of Jacobs and van Norden (2011) within a class of trend-cycle decompositions relating directly to the Beveridge--Nelson decomposition. In both these approaches, identifying restrictions on the covariance matrix under simple and realistic conditions may...

We consider a static portfolio system that satisfies adding-up constraints and Tobin's gross substitution theorem. We show the relationship of the two conditions to the weak dominant diagonal property of the matrix of interest rate elasticities. This enables us to investigate effects of...