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Contagion in sovereign yield spreads

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Resumo:Since the beginning of the sovereign debt crisis in the Euro Area, the main concern for the European leaders is to prevent against the possible contagion from the distress countries, as Greece, Ireland and Portugal. In our research, we will try to understand if there is a spillover effect from the countries mentioned before and which determinants can be considered as a mechanism of transmission of the sovereign debt crisis. We will perform an econometric analysis in a panel of 13 EU countries (Austria, Belgium, Denmark, Finland, France, Greece, Ireland, Italy, the Netherlands, Portugal, Spain, Sweden and the United Kingdom), covering the period 2000:Q1 to 2013:Q1, and after we analyze each country individually, on the basis of a SUR analysis. We find that the countries with deteriorated macro and fiscal fundamentals are more vulnerable to contagion and are more affected by the international, liquidity and credit risks.
Autores principais:Félix, Ana Catarina Ramos
Assunto:sovereign yield spreads spillover effects contagion
Ano:2013
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso aberto
Instituição associada:Universidade de Lisboa
Idioma:inglês
Origem:Repositório da Universidade de Lisboa
Descrição
Resumo:Since the beginning of the sovereign debt crisis in the Euro Area, the main concern for the European leaders is to prevent against the possible contagion from the distress countries, as Greece, Ireland and Portugal. In our research, we will try to understand if there is a spillover effect from the countries mentioned before and which determinants can be considered as a mechanism of transmission of the sovereign debt crisis. We will perform an econometric analysis in a panel of 13 EU countries (Austria, Belgium, Denmark, Finland, France, Greece, Ireland, Italy, the Netherlands, Portugal, Spain, Sweden and the United Kingdom), covering the period 2000:Q1 to 2013:Q1, and after we analyze each country individually, on the basis of a SUR analysis. We find that the countries with deteriorated macro and fiscal fundamentals are more vulnerable to contagion and are more affected by the international, liquidity and credit risks.