This paper provides an analysis of the role played by fiscal rules and the shadow economy on the evolution of public debt. Thus, we investigate the effectiveness of fiscal rules in limiting the level of indebtedness considering the presence of a shadow economy for 194 advanced, emerging, and...

Several studies have identified the factors that cause public deficits in industrial democracies. They consider that economic, political and institutional factors play an important role in the understanding of those deficits. However, the study of the determinants of excessive deficits remains...

This paper develops an arbitrage-free affine term structure model of potentially defaultable sovereign bonds to model a cross-section of eight euro area government bond yield curves since January 1999. The existence of a common monetary policy under European Monetary Union determines the short...