This paper compares macroeconomic effects of Knightian uncertainty and risk using policy shocks for the case of Italy. Drawing on the ambiguity literature, I use changes in the bid-ask spread and mid-price of government bonds as distinct measures for uncertainty and risk. The identification...

This paper compares macroeconomic effects of Knightian uncertainty and risk using policy shocks for the case of Italy. Drawing on the ambiguity literature, I use changes in the bid-ask spread and mid-price of government bonds as distinct measures for uncertainty and risk. The identification...

Die wirtschaftliche Aktivität und das Ausfallrisiko staatlicher Schulden beeinflussen sich gegenseitig. Sinkt die wirtschaftliche Aktivität einer Volkswirtschaft, steigt wegen fallender Steuereinnahmen das Risiko, dass der Staat Zinszahlungen und Tilgungen auf Staatsanleihen nicht...

Die wirtschaftliche Aktivität und das Ausfallrisiko staatlicher Schulden beeinflussen sich gegenseitig. Sinkt die wirtschaftliche Aktivität einer Volkswirtschaft, steigt wegen fallender Steuereinnahmen das Risiko, dass der Staat Zinszahlungen und Tilgungen auf Staatsanleihen nicht...

Policy makers often implement austerity measures when the sustainability of public finances is in doubt and, hence, sovereign yield spreads are high. Is austerity successful in bringing about a reduction in yield spreads? We employ a new panel data set which contains sovereign yield spreads for...

We ask whether cuts of government consumption lower or raise the sovereign default premium. To address this question, we set up a new data set for 38 emerging and advanced economies which contains quarterly time-series observations for sovereign default premia, government consumption, and...

We ask whether cuts of government consumption lower or raise the sovereign default premium. To address this question, we set up a new data set for 38 emerging and advanced economies which contains quarterly time-series observations for sovereign default premia, government consumption, and...

We ask whether cuts of government consumption lower or raise the sovereign default premium. To address this question, we set up a new data set for 38 emerging and advanced economies which contains quarterly time-series observations for sovereign default premia, government consumption, and...

Policy makers often implement austerity measures when the sustainability of public finances is in doubt and, hence, sovereign yield spreads are high. Is austerity successful in bringing about a reduction in yield spreads? We employ a new panel data set which contains sovereign yield spreads for...