period 1970-2007, for different EU and OECD country groupings. We use the panel-data approach of Kónya (2006), which is based … effective real exchange rate in the SUR system does not substantially alter the results. -- Panel causality tests ; budget …

for the full panel. Performing an expanding window analysis, we conclude that the differential between the long-term real … interest rate and the real GDP growth rate (r-g) plays a crucial role in fiscal sustainability, as well as the existence of … sign as well as on past debt-to-GDP ratios. …

We study sovereign bond yields in OECD countries with a dynamic panel by checking for cross-section dependence …; assessing panel cointegration; and estimating panel error-correction models. The results show that markets consider budgetary … and external imbalances and inflation as relevant determinants of sovereign yields. -- long-term yields ; panel …