institutions. -- Global VAR methodology ; fiscal spillovers ; euro area ; public debt …

This paper discusses the type of trajectory a country's public debt path follows. In particular, a Markov switching ADF … model is used to assess the sustainability of public debt by testing whether a government's present value borrowing … methodology. The number of lags and states are in principle unrestricted and all of the parameters can be switching. Debt …

After the global financial crisis, some governments in the EU experienced serious debt financing problems, while others … groups of countries, but generally little feedback from the debt stock to the primary balance. The countries that eventually … from the debt stock, and these reactions are particularly pronounced for the countries with severe fiscal problems …

future direction of fiscal austerity programs to combat the euro area debt crisis. …

indebtedness. In particular, fiscal consolidations lead to severe contractions when implemented in high private debt states …. Contrary, fiscal consolidations have no significant effect on economic activity when private debt is low. These results are … robust to alternative definitions of private debt overhang, the composition of fiscal consolidations and controlling for the …

debt and show that the signaling channel is active only for high levels of asymmetric information. The model generates a … ability to repay sovereign debt and show that the signaling channel is active only for high levels of asymmetric information …