This paper explores the implications of fiscal rules and independent fiscal institutions (IFIs) on sovereign risk. We employ a dynamic panel model for a sample composed of 24 countries members of the European Union over the period 2007-2019 and document that fiscal rules contain sovereign...

This paper explores the implications of fiscal rules and independent fiscal institutions (IFIs) on sovereign risk. We document that fiscal rules contain sovereign default risk in 24 countries members of the European Union measured by the credit default swap (CDS) spreads. IFIs, through...