Aizenman, Joshua; Hutchison, Michael M.; Jinjarak, Yothin - 2011
We estimate the pricing of sovereign risk for a large number of countries within and outside of Europe, before and … determinant of market-based sovereign risk, and find evidence of mispricing in PIIGS given current fiscal space and other current … Europe that, before the crisis (2007), were closest in terms of fiscal space (debt/tax). We find that PIIGS default risk is …
